Supreme Court Decree: Old Naira Notes Legal Tender Indefinitely

InfoStride News reported on Wednesday that the Nigeria Supreme Court has declared that the Old Naira notes will remain legal tender until further notice. This decision comes after the apex court had previously extended the deadline for phasing out old Naira notes to December 31, 2023, back in March 2023. The federal government had also sought an extension for the old naira notes on November 21, 2023.

In its plea to the Supreme Court, the federal government highlighted the potential consequences of a refusal to extend the circulation duration of old notes. It warned of the possibility of a national, economic, and financial crisis, drawing parallels to challenges faced in the first quarter of the year during the implementation of the naira redesign policy under the former Central Bank Governor, Godwin Emefiele.

The government requested permission to allow the old notes to coexist with the new notes until stakeholders could be consulted, expressing concerns that some Nigerians had already begun hoarding both old and new naira notes ahead of the December 31st deadline.

In the recent ruling, the Supreme Court in Abuja declared that the old notes would remain legal tender and acceptable for transactions until further notice.

Providing additional context, earlier this month, the Central Bank issued a circular, as reported by InfoStride News, stating that the old naira notes would remain legal tender indefinitely. Dr Isa AbdulMumin, the CBN’s Director of Corporate Communications, conveyed this information, eliminating the previous deadline of December 31, 2023, for the legal tender status of old N200, N500, and N1000 notes.

The statement from the Central Bank explained the decision, stating:

“Please recall that the Central Bank of Nigeria introduced the redesign of N200, N500 and N1,000 denominations in October 2022 and certain deadlines were set for the old design of these denominations to cease as legal tenders.
“Without prejudice, the Central Bank of Nigeria wishes to inform the general public of its desire to extend the legal tender status deadline of the old design of N200, N500 and N1,000 denominations, ad infinitum. This is in line with international best practices and to forestall a repeat of earlier experiences.
“Thus, all banknotes issued by the Central Bank of Nigeria (CBN), by Section 20(5) of the CBN Act 2007, will continue to remain legal tender, ad infinitum, even beyond the initial December 31, 2023, deadline.
The Central Bank of Nigeria is working with the relevant authorities to vacate the subsisting court ruling on the same subject.”

The CBN emphasized that all its branches across the country would continue to issue and accept all denominations of Nigerian banknotes, both old and redesigned, to and from banks.

This development provides clarity and assurance to the public regarding the status of old Naira notes, addressing concerns raised by the federal government and aligning with international best practices. The decision also reflects the Central Bank’s commitment to maintaining stability and preventing potential disruptions in the nation’s economy.