Banks ration old notes as CBN Okays it as legal tender
By Felicia Nwosu
After months of excruciating pains and torture on Nigerians, the Central Bank of Nigeria (CBN) has finally directed that the old N200, N500 and N1000 banknotes remain legal tender alongside the redesigned banknotes till December 31, 2023.
Meanwhile, there is a new twist to the new development, as despite the fact that CBN has given its consent for banks to treat the banned old notes as legal tender, some Deposit Money Banks have begun to ration the disbursements of old N1, 000 and N500 notes to their customers amid uncertainty over whether the Central Bank of Nigeria will release the old notes in its custody.
Giving the directive in a statement sign by Isa Abdulmumin, the acting director, corporate communications department of CBN, noted that this is in compliance with the established tradition of obedience to court orders and sustenance of the “Rule of Law Principle that characterized the government of President Muhammadu Buhari”. He stated that Deposit Money Banks operating in Nigeria have been directed to comply with the Supreme Court judgment of March 3, 2023.
Accordingly, the CBN met with the Bankers’ Committee and has directed that the old N200, N500 and N1000 banknotes remain legal tender alongside the redesigned banknotes till December 31, 2023. Consequently, all concerned are directed to conform accordingly.
The un-reluctant acceptance of the apex bank’s position came after several weeks of confusion over the legal status of the old currencies amid a series of Supreme Court judgments in a suit between some state governments and the Federal Government.
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