In response to the recent Supreme Court order dated November 29, 2023, which acceded to the request of the Minister of Justice and Attorney-General of the Federation, the Central Bank of Nigeria (CBN) has issued a directive instructing all of its branches to continue facilitating the issuance and acceptance of both old and redesigned denominations of Nigerian banknotes. This directive extends to transactions with deposit money banks (DMBs).
Acting Director of Corporate Communications, Mrs. Sidi Ali Hakama, released an official statement confirming the directive. The Supreme Court’s ruling specifies that the old versions of N4200, N500, and N1,000 banknotes will maintain their status as legal tender alongside their redesigned counterparts. This mandate is in accordance with Section 20(5) of the CBN Act of 2007, ensuring that all banknotes issued by the CBN will remain legal tender indefinitely.
Mrs. Hakama urged the public to seamlessly accept both old and redesigned Naira banknotes in their day-to-day transactions, emphasizing the importance of handling these notes with utmost care to preserve their lifecycle.
In addition to the continued acceptance of physical currency, the CBN encourages the adoption of alternative payment methods and electronic channels by the general public. This proactive approach aims to alleviate the reliance on physical cash transactions, promoting efficiency and reducing pressure on the circulation of traditional banknotes.
As the apex bank works to implement these directives, it anticipates a smooth transition within the financial landscape, ensuring the sustained functionality of the Nigerian currency system.
