Fakoyejo OlalekanPresident Muhammadu Buhari has announced that the old N200 notes will remain legal tenders till 10 April 2023, as he makes changes to the Central Bank of Nigeria’s (CBN) directive to banks.
Buhari, in a nationwide broadcast on Thursday, 16 February 2023, said the extension was made due to the difficulties being experienced with the implementation of CBN monetary policy.
He said CBN has been informed to allow the old N200 notes to circulate alongside the redesigned N200, N500 and N1,000 which were released in December 2023.
“To further ease the supply pressures particularly to our citizens, I have given approval to the CBN that the old N200 bank notes be released back into circulation and that it should also be allowed to circulate as legal tender with the new N200, N500, and N1000 banknotes for 60 days from February 10, 2023 to April 10 2023 when the old N200 notes ceases to be legal tender.
“In line with Section 20(3) of the CBN Act 2007, all existing old N1000 and N500 notes remain redeemable at the CBN and designated points.”
Buhari’s decision followed the Supreme Court’s ruling that the old notes should remain legal pending the determination of the suit brought to the apex court by three Northern states; Kaduna, Kogi and Zamfara, against the Federal Government.
The Supreme Court shifted its judgement on the case to 22 February 2023, as more states joined the three Northern states in the suit to stop the phasing out of old Naira notes within a short window.
This means the N500 and N1,000 notes are no longer legal, which is against the pronouncement of the Supreme Court. In his statement, Buhari didn’t address the Supreme Court ruling. The central bank has also not responded to the apex court’s decisions.
Meanwhile, prior to Buhari’s statement, commercial banks have stopped accepting the N200, N500 and N1,000 notes from their customers.
This is despite the Supreme Court’s ruling that restrained the central bank and FG from phasing out the old Naira notes for the new currencies.
Speaking on the transition, Buhari urged Nigerians to continue to deposit their old notes and be patient with the timeframe stipulated.
“Considering the health of our economy and the legacy we must bequeath to the next administration and future generations of Nigerians, I admonish every citizen to strive harder to make their deposits by taking advantage of the platforms and windows being provided by the CBN.
“Let me assure Nigerians that our administration will continue to assess the implementation with a view to ensuring that Nigerians are not unnecessarily burdened. In this regard, the CBN shall ensure that new notes become more available and accessible to our citizens through the banks.
“I wish to once more appeal for your understanding till we overcome this difficult transient phase within the shortest possible time,” the President said.
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