Old Naira Notes Still Legal Tender: CBN Sets the Record Straight Amid Cash Scarcity

By Achimi Muktar

The Central Bank of Nigeria (CBN) has reaffirmed that the old N1000, N500, and N200 notes remain valid legal tender, dispelling rumors that they would cease to be accepted by December 31, 2024.

This clarification comes as Nigerians grapple with worsening cash scarcity, despite CBN’s directive to banks to ensure cash availability at Automated Teller Machines (ATMs).

CBN Clears the Air on Rumors

Hakama Sidi Ali, spokesperson for the apex bank, issued a statement on Friday addressing misinformation surrounding the validity of the old naira notes.

"CBN has observed the misinformation regarding the validity of the old N1000, N500, and N200 banknotes currently in circulation," the statement read.

The CBN emphasized that, based on a Supreme Court ruling issued on November 29, 2023, the old naira notes will continue to circulate alongside the redesigned versions indefinitely.

"For the avoidance of doubt, all versions of the naira, including the old and new designs of N1000, N500, and N200 denominations, as well as the commemorative and previous designs of the N100 denomination, remain valid and continue to be legal tender without any deadline," the bank reiterated.

Public Advised to Disregard False Claims

The CBN urged Nigerians to ignore any claims that suggest the old notes would lose their legal tender status at the end of 2024.

"We advise the public to continue accepting all naira banknotes for daily transactions and handle them with care to ensure their longevity," the statement added.

Emphasis on Digital Payments

Acknowledging the ongoing cash scarcity, the CBN encouraged the public to explore alternative e-payment channels to reduce reliance on physical cash.

"The general public is encouraged to embrace alternative modes of payment, such as e-channels, to reduce pressure on using physical cash," the CBN advised.

A Lingering Crisis

Despite CBN's assurances and directives, cash scarcity continues to disrupt daily life for millions of Nigerians. The crisis has persisted since the controversial naira redesign policy initiated by former CBN Governor Godwin Emefiele, which sparked widespread criticism and confusion.

In October 2024, the CBN had reiterated there was no deadline for using the old naira notes, aligning with the Supreme Court’s ruling that both old and new notes can coexist.

As the year winds down, Nigerians are urged to stay informed and avoid panic over the validity of their naira notes while adapting to the growing push for digital transactions