The Central Bank of Nigeria (CBN) has announced that the old N200, N500 and N1000 banknotes will continue to be accepted as legal tender beyond the previously stated deadline of December 31, 2023.
The CBN had earlier said that the old notes would cease circulating by year’s end, in compliance with a Supreme Court ruling. This led to severe cash shortages when the redesigned new notes were rolled out inefficiently under former CBN Governor Godwin Emefiele.
Citizens faced major hardship in February as banks rejected the old notes before the January 31 deposit deadline. Widespread protests and some riots targeting banks erupted in response to the cash crunch.
However, with Nigerians still struggling to access the new banknotes, the CBN has now reversed course just days before the looming December 31 phase-out.
A senior CBN official confirmed to reporters that both the old and new versions of the ₦200, ₦500 and ₦1000 notes remain legal tender. He assured Nigerians not to worry about the deadline, saying the old notes will be gradually phased out to avoid further public pain.
The policy change comes as a relief to many Nigerians still relying on the old currency. Analysts say the CBN wants to avoid renewed social unrest by prematurely removing the notes from circulation before supply stabilises.
Experts advise Nigerians to spend or deposit any old notes they have, as they will eventually cease being accepted in the future. But the CBN now says there is no urgent deadline for the old currency to completely disappear.
“They are all legal tender. Nigerians should continue to spend them. There is no need to exercise fear about the deadline.”
“We won’t want Nigerians to undergo similar pain as they experienced earlier this year. The phasing out of the old notes will be gradual. It won’t be rushed,” he assured.
