Nigeria’s Central Bank has declared an extension of the legal tender status of the old N200, N500, and N1000 notes in response to worries and possible cash shortages caused by the original plan to phase them out by December 31, 2023.
Dr. Isa AbdulMumin, the Director of Corporate Communications at the Central Bank of Nigeria (CBN), revealed on Tuesday that the old banknotes would “remain legal tender ad infinitum, even beyond the initial December 31, 2023 deadline.” This decision comes under the new leadership that assumed office in September.
The CBN had previously introduced redesigned N200, N500, and N1000 denominations in October 2022, along with deadlines for the cessation of legal tender status for the old design. The primary objective was to counter counterfeiting and manage liquidity in an economy where a significant portion of money is held outside banks.
The latest announcement underscores the commitment to aligning with international best practices and avoiding a recurrence of past challenges. All branches of the CBN nationwide will continue to issue and accept all Nigerian banknote denominations, encompassing both old and redesigned notes. The public is strongly encouraged to accept all Naira banknotes for their daily transactions and embrace alternative modes of payment.
