CBN extends use of old Naira notes as legal tender

*Godwin Emefiele, Governor of the Central Bank of Nigeria, announces the banking regulator has sought and obtained President Muhammadu Buhari’s approval for a 10-day extension of the deadline from January 31, 2023, to February 10 for the collection of more old N200, N500 and N1000 notes ‘legitimately held by Nigerians’

Isola Moses | ConsumerConnect
Following the latest approval of the Bank’s request for extension of the initial January 31, 2023, deadline for phasing out old banknotes, the Central Bank of Nigeria (CBN) has extended the deadline for the use of old Naira notes till Friday, February 10 this year.

Mr. Godwin Emefiele, Governor of CBN, who disclosed this development in a statement signed and issued Sunday, January 29, noted that the Bankers’ Bank had sought and got approval from President Muhammadu Buhari to extend the deadline for the old notes by 10 days.

Old Naira notes 

Emefiele stated: “Based on the foregoing, we have sought and obtained Mr President’s approval for the following: A 10-day extension of the deadline from January 31 to February 10 to allow for the collection of more old notes legitimately held by Nigerians.

“A 7-day grace period, beginning from February 10 to February 17, 2023, in compliance with Sections 20(3) and 22 of the CBN Act allowing Nigerians to deposit their old notes at the CBN after the February deadline when the old currency would have lost its Legal Tender Status.”

The CBN Governor also solicited the cooperation of all Nigerians in ensuring a hitch-free process for the implementation of the policy in the West African country.

It is recalled that ahead of Sunday’s extension of the use of old banknotes, reports across the country had indicated that several millions of Nigerian consumers had experienced difficulty in lodging their old Naira notes.

ConsumerConnect investigations as of noon time Sunday, January 29 found that the frustrations, rejections, and scramble to get the new N200, N500 and N1000 notes by lots of consumers to meet the initial January 31 deadline were worrisome.

Besides flooding the banking halls and agency banking centres and Point of Sale (PoS) terminal operators’ offices till Saturday afternoon, the situation in several places was chaotic as many consumers struggled to deposit their old notes to exchange them with new ones.

Others are seen in long queues at the few ATM points dispensing the new Naira notes in different parts of the country to have access, according to reports.

Hitherto, several individuals, groups and institutions had criticised the Naira redesign, launch and circulation process.

While some have hailed the Federal Government though the CBN for the monetary policy on the Naira redesign, several others have loudly condemned the effort, especially the application and strategy of circulation of the Naira policy.

Others, including the civil organisations, human rights activitists, the Nigerian Bar Association (NBA), the National Assembly (NASS), politicians, political parties, and candidates standing for elections had also urged the banking regulatory authorities to extend the deadline because of limited quantities of the new banknotes for use of consumers of financial products and services in the Nigerian economy.