The circulation of old N200, N500, and N1,000 notes has been clarified by the Central Bank of Nigeria on Thursday that it has no plan to stop its usage by December 31, 2024. This response came after the House of Representatives urged the CBN to increase the release of the newer N200, N500, and N1,000 banknotes while phasing out the old notes before the deadline.

The House of Representatives, concerned about the currency transition process, urged the CBN to instruct commercial banks to stop dispensing the old notes and to start gradually collecting them from the public. The move followed a motion presented by Hon. Afam Ogene, who raised alarm over the central bank’s lack of public sensitization regarding the cessation of old note circulation from January 1, 2025. Ogene highlighted the urgent need for a comprehensive awareness campaign to prepare Nigerians for the deadline, ensuring a smooth transition without confusion.

In response, the CBN, through a statement issued by its acting Director of Corporate Communications, Mrs. Sidi-Ali Hakama, refuted the claims and concerns raised by the House. Hakama emphasized that the assertions were false and unfounded, pointing to a November 29, 2023, Supreme Court ruling that extended the legal use of old banknotes indefinitely. This ruling came after the Attorney-General of the Federation and the Minister of Justice petitioned the court for an extension, which the court granted. As such, the CBN’s directive for all branches to continue accepting and issuing both old and redesigned notes remains valid.

The CBN went further to clarify that contrary to the suggestions from the House of Representatives, both old and redesigned banknotes will remain legal tender indefinitely, in line with the Supreme Court ruling. The central bank urged Nigerians to disregard any claims that the old notes would cease to be legal tender by the end of 2024. Additionally, the CBN encouraged Nigerians to continue using both sets of notes for everyday transactions, while also advising them to handle the notes with care to prolong their usability.

In addition to its stance on the legal tender status of the old notes, the CBN reiterated its recommendation that Nigerians embrace alternative payment methods, such as electronic channels. The bank emphasized that digital payment systems could help reduce the pressure on physical cash usage and alleviate potential issues related to currency circulation, especially as the country continues its gradual move toward a cashless economy.

The original deadline set by the CBN for phasing out the old N200, N500, and N1,000 notes was December 31, 2023. However, due to economic hardships and legal challenges following the currency redesign program, the deadline was extended indefinitely. The Supreme Court ruling, which allowed for the continued coexistence of the old and redesigned notes, gave the CBN the legal backing to continue circulating both versions without specifying a future deadline for discontinuation.

Despite the legal clarification, concerns remain within the House of Representatives regarding the lack of public awareness about the extended circulation of the old notes. Hon. Ogene recalled the confusion, chaos, and hardship caused by the 2023 currency redesign program, which left Nigerians unprepared and led to legal battles between the CBN and state governors. He stressed the importance of proper sensitization this time around to avoid a repeat of the earlier challenges, especially as the new deadline approaches.

Ogene argued that with less than two months to the December 31, 2024, deadline, the CBN should have already begun a public awareness campaign through media outlets such as television, radio, newspapers, and social media platforms. The lack of such initiatives so far, he contended, could lead to a repeat of the chaotic situation Nigerians faced in 2023 when they were caught off-guard by the abrupt withdrawal of the old notes. To prevent this, the lawmaker called on the CBN to prioritize public education on the matter, ensuring Nigerians are fully prepared for the eventual phase-out of the old banknotes.

The House of Representatives, in its resolution, urged the CBN to immediately increase the circulation of the new banknotes and begin a gradual withdrawal of the old notes from the economy. Additionally, they called on the central bank to order commercial banks to stop issuing old notes to their customers, ensuring a smooth transition to the redesigned currency.

In a related development, the House of Representatives announced a donation of N100 million to support the victims of a petrol tanker explosion that recently occurred in Jigawa State. The explosion, which claimed over 170 lives, devastated the local community. Hon. Tajudeen Abbas, Speaker of the House, led a delegation to offer condolences to the people of Jigawa and emphasized the House’s commitment to supporting the affected families during this tragic time. The funds will be used to provide treatment for those injured and offer financial support to the families of the victims.

In summary, while the CBN has reassured Nigerians that the old N200, N500, and N1,000 notes will remain in circulation indefinitely following the Supreme Court ruling, the House of Representatives continues to press for greater public awareness and a clear phase-out plan to prevent confusion and ensure a smooth currency transition.