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CBN Extends Legal Tender Status of Old Design Naira Banknotes Indefinitely
CBN Extends Legal Tender Status of Old Design Naira Banknotes Indefinitely
The Central Bank of Nigeria (CBN) has revealed its decision to extend the legal tender status of the old design N200, N500, and N1,000 banknotes indefinitely. This move comes after the introduction of redesigned versions of these denominations in October 2022, with initial deadlines set for the discontinuation of the old design as legal tender.
The CBN’s decision to extend the legal tender status indefinitely is in line with international best practices and aims to prevent a recurrence of past challenges. By invoking Section 20(5) of the CBN Act 2007, all banknotes issued by the CBN will continue to be recognized as legal tender beyond the initial deadline of December 31, 2023. Furthermore, the CBN is actively collaborating with relevant authorities to overturn the existing court ruling on this matter.
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As a result of this development, all CBN branches throughout the country will continue to accept and issue both old and redesigned denominations of Nigerian banknotes to and from deposit money banks (DMBs). The CBN emphasizes that the general public should diligently handle Naira banknotes to ensure their longevity and protect their overall lifecycle. Additionally, individuals are encouraged to adopt alternative payment methods and embrace electronic channels for their day-to-day transactions.
The CBN’s decision to extend the legal tender status of the old design Naira banknotes indefinitely provides individuals with continued flexibility in their financial transactions. It also underscores the importance of adapting to modern payment technologies while ensuring the proper handling of physical currency.
