CBN Backs Supreme Court on Old Naira Notes, Orders Nigerian Banks to Comply

InfoStride News reports that the Central Bank of Nigeria (CBN) has officially endorsed the decision of the Nigeria Supreme Court, declaring that the Old Naira notes will continue to be recognized as legal tender in the country until further notice. This confirmation came through a statement released by the apex bank on Wednesday, directing all banks to comply with the court’s ruling and accept both old and redesigned Naira notes indefinitely.

The statement issued by the CBN reads as follows:

“Following the Supreme Court’s order on Wednesday, November 29, 2023, granting the Minister of Justice and Attorney-General of the Federation’s plea to extend the use of old Naira banknotes ad infinitum, the Central Bank of Nigeria (CBN) has instructed all its branches to persist in issuing and accepting all denominations of Nigerian banknotes, old and re-designed, to and from deposit money banks (DMBS).

“For clarity, the Supreme Court decreed that the old versions of N200, N500, and N1,000 banknotes shall continue to be legal tender, alongside the re-designed versions. Consistent with Section 20(5) of the CBN Act 2007, all banknotes issued by the CBN will remain legal tender indefinitely.
“Members of the public are encouraged to accept all Naira banknotes (old or re-designed) for their day-to-day transactions and handle these banknotes with the utmost care to safeguard and protect the lifecycle of the banknotes.”
The CBN also urged Nigerians to embrace alternative payment methods such as e-channels to alleviate the reliance on physical cash, promoting a more efficient and secure financial ecosystem.

Notably, InfoStride News points out a change in the leadership of the Corporate Communications department at the CBN. The statement was signed by the acting director of the department, Mrs. Hakama Sidi Ali, who has taken over from Dr. Isa Abdulmumin. Abdulmumin’s appointment as acting Director of Corporate Communications was confirmed in June of this year, succeeding Osita Nwanisobi, the former director who retired in February 2023.

This development showcases the dynamic nature of leadership within the CBN’s communication structure, highlighting the importance of effective communication in disseminating key monetary policy decisions and updates to the public. As the CBN continues to navigate the evolving financial landscape, having a stable and capable leadership team in the communications department is crucial for maintaining transparency and building public trust.

In conclusion, the affirmation by the CBN regarding the legal status of old Naira notes underscores the significance of regulatory decisions in shaping the country’s monetary policies. InfoStride News will continue to monitor and report on developments in Nigeria’s financial sector, providing timely and accurate information to its readers.