…Reps caution against shoddy implementation
BY SAM OTUONYE
In a significant move to enhance currency management and combat inflation, the Central Bank of Nigeria (CBN) has announced that the old N200, N500, and N1000 banknotes will cease to be legal tender after December 31, 2024.
The decision which was aimed at strengthening the economy and reducing illicit financial activities, followed the successful redesign and reissue of the new naira notes earlier this year.
The CBN has advised Nigerians to exchange their old notes for new ones before the deadline. CBN Governor emphasized the need for a more efficient and secure currency system, stating, “This move will strengthen our economy and reduce illicit financial activities.”
Nigerians are therefore, urged to visit their banks or designated exchange centers to swap old notes for new ones before the December 31 deadline.
Consequently, the House of Representatives has instructed the CBN to direct Money Deposit Banks to conduct transactions with customers using only new naira notes, initiating the process of replacing the old ones.
The decision came after the House adopted a motion of urgent national importance, presented by Victor Ogene, who represents Ogbaru Federal Constituency in Anambra State, during Thursday’s plenary session.
During the debate, Victor Ogene, a lawmaker from the Labour Party, recalled the hardships Nigerians endured during the naira redesign process, noting that the CBN’s failure to distribute sufficient new notes contributed to the suffering. He reminded the House that, according to the Supreme Court’s ruling, the N200, N500, and N1,000 notes would cease to be legal tender on January 1, 2025. With less than two months until the deadline, Ogene expressed concern that the CBN had not yet taken steps to inform Nigerians about the impending change.
Ogene cautioned that Nigerians could face another chaotic situation similar to the one in February 2023 if the CBN does not act quickly to prepare the public for the discontinuation of the old notes by January 1, 2025. He argued that the CBN should have already started awareness campaigns, including TV and radio ads, social media posts, flyers, and newspaper publications, to inform people three months before the deadline.
He also raised concerns about the CBN’s continued release of old N200, N500, and N1,000 notes alongside the new ones, rather than initiating a gradual withdrawal process as expected.
In response, the House resolved to urge the CBN to increase the supply of new N200, N500, and N1,000 notes and begin the gradual withdrawal of the old notes before the December 31, 2024 deadline. It also called on the CBN to instruct commercial banks to stop distributing old notes to customers and start a gradual mopping up of these notes. Furthermore, the House encouraged the CBN to launch public awareness campaigns to ensure Nigerians are informed and prepared for the upcoming deadline.
The motion was subsequently referred to the House Committee on Banking Regulations for further legislative review and action.
It would be recalled that the CBN introduced new N200, N500, and N1,000 notes in October 2022, with circulation starting in December of the same year. The decision to withdraw old notes initially faced significant opposition from many Nigerians who struggled to access the new notes, which were in short supply at the time.
After several legal disputes, the Supreme Court set a final deadline of December 31, 2024, after which the old naira notes would no longer be considered legal tender in Nigeria.