Cash Scarcity: CBN Speaks On The Validity Of Old N1000, 500, N200 Naira Notes

Published On December 14, 2024 In Benue, Nigeria

By Inyima Nicholas Sunday, A Blogger

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The Central Bank of Nigeria (CBN) has once again emphasized that the old N1000, N500, and N200 banknotes remain valid and legal tender across the entire country. This clarification comes amidst growing confusion and cash scarcity, which continues to affect Nigerians despite directives from the apex bank to ensure the availability of cash in Automated Teller Machines (ATMs) nationwide.

In a statement issued on Friday, the CBN spokesperson, Hakama Sidi Ali, addressed the misinformation circulating about the status of the old banknotes. The CBN reassured Nigerians that all denominations of its banknotes, both old and redesigned, remain valid for transactions and should be accepted by the public.

“The Central Bank has noted with concern the ongoing misinformation regarding the validity of the old N1000, N500, and N200 banknotes currently in circulation. To provide clarity and allay any concerns, the Bank wishes to reiterate that the subsisting Supreme Court ruling of November 29, 2023, allows for the indefinite coexistence of both the old and new versions of the N1000, N500, and N200 denominations,” the statement read.

The CBN stressed that the ruling by the Supreme Court remains binding, and therefore, all Naira denominations, including commemorative notes and previous designs, remain legal tender without any deadline. Specifically, the Bank clarified that there is no truth to claims suggesting the old N1000, N500, and N200 notes will cease to be valid by December 31, 2024.

“For the avoidance of doubt, the CBN confirms that all versions of the Naira, including the old and redesigned N1000, N500, and N200 denominations, as well as the commemorative and earlier designs of the N100 note, remain valid and legal tender for transactions across the nation. Nigerians are advised to disregard any claims suggesting otherwise and continue to use all Naira notes for daily transactions,” the statement further explained.

The CBN also urged Nigerians to handle the banknotes carefully to ensure their longevity, noting that proper care is essential to maintain the quality of the notes in circulation.

Furthermore, the CBN encouraged Nigerians to embrace alternative means of payment, particularly electronic banking platforms, to reduce the pressure on physical cash. This recommendation aligns with the Bank’s ongoing efforts to promote cashless transactions and modernize the payment infrastructure in Nigeria.

“In addition to using cash, we strongly encourage the public to adopt alternative payment methods, such as e-channels and other digital platforms, for their daily transactions. This will help reduce reliance on physical cash and contribute to easing the current challenges,” the statement added.

The clarification by the apex bank comes at a time when cash scarcity has significantly worsened in various parts of the country, despite the Bank’s continuous directives aimed at addressing the issue. Reports indicate that many Nigerians are still struggling to access sufficient cash for their everyday needs, with some banks failing to comply fully with CBN’s instructions to replenish ATMs.

This recent statement aligns with the Bank’s earlier communication in October 2024, where it confirmed that there is no deadline for the use of the old banknotes. This follows the controversial Naira redesign policy implemented during the tenure of former CBN governor Godwin Emefiele, under which the Supreme Court ruled in favor of the coexistence of the old and redesigned Naira notes.

The Supreme Court ruling of November 2023 reaffirmed the legality of all Naira banknotes, permitting the simultaneous use of old and new designs without restriction. This ruling remains binding, ensuring Nigerians the freedom to use all available denominations of the Naira in their transactions.

The CBN’s renewed assurance is expected to calm public concerns and dispel rumors regarding the validity of the old notes. It also serves as a reminder of the Bank’s commitment to addressing cash scarcity challenges while encouraging Nigerians to adopt electronic payment systems as a viable alternative to physical cash.

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