CBN Extends Acceptance of Old, Redesigned Naira Notes After Supreme Court Ruling

Stay updated on the latest financial developments in Nigeria. Read about the Central Bank's directive for banks to accept both old & redesigned Naira

The Central Bank of Nigeria (CBN) has mandated banks nationwide to continue issuing and receiving both old and newly redesigned Naira banknotes, aligning with a recent Supreme Court decision.

Remember Earlier, the Supreme Court approved the Minister of Justice's plea to prolong the use of old Naira banknotes indefinitely, overturning the initial deadline set for December 31.

Now In response to the court's decision, the CBN released a statement instructing all its branches to persist in issuing and accepting all denominations of Nigerian banknotes, encompassing both the traditional and revamped versions. 

The Supreme Court specifically ruled that the old N200, N500, and N1,000 banknotes remain legal tender, coexisting with their redesigned counterparts. 

Consequently, in accordance with Section 20(5) of the CBN Act 2007, all banknotes issued by the CBN will remain legal tender indefinitely.

The seven-man panel, led by Justice Inyang Okoro, made this ruling following the federal government's request for an extension of the validity period for old Naira notes. The government sought to nullify the earlier March 3 order and emphasized the need for more time due to challenges in printing the required volume of new notes by the December 31 deadline.

The CBN emphasized, "Members of the public are enjoined to continue accepting all Naira banknotes, whether old or redesigned, for their daily transactions, handling these banknotes with utmost care to preserve their lifecycle. Additionally, the public is encouraged to adopt alternative payment methods and e-channels to alleviate reliance on physical cash."

The redesign initiative, introduced by the President Muhammadu Buhari administration under the leadership of Godwin Emefiele at the CBN in October last year, initially caused disruptions as Nigerians encountered challenges accessing cash. Stay informed about the evolving financial landscape in Nigeria with Business Post Nigeria.

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• CBN
• Central Bank of Nigeria
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• Supreme Court decision
• Currency directive
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• Redesigned Naira
• Legal tender extension
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• Cash circulation update
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