By Sabiu Abdullahi
The Central Bank of Nigeria (CBN) has announced extending the legal tender status of old naira banknotes indefinitely.
With this development all naira banknotes issued by the CBN will continue to remain legal tender, regardless of their denomination or design.
The CBN had previously set a deadline of December 31, 2023, for old naira banknotes to cease to be legal tender.
However, the Nigeria’s apex bank has now decided to extend this deadline indefinitely, in line with international best practices and to forestall a repeat of earlier experiences.
The CBN is also working with the relevant authorities to vacate the subsisting court ruling on the same subject.
The general public is enjoined to continue to accept all naira banknotes (old or redesigned) for day-to-day transactions and handle these banknotes with the utmost care to safeguard and protect the lifecycle of the banknotes.
The CBN’s decision to extend the legal tender status of old naira banknotes indefinitely is a welcome move.
It will help to reduce confusion and inconvenience for the general public, and it will also give people more time to exchange their old banknotes for new ones.
The CBN’s decision is also in line with international best practices. In many countries, old banknotes remain legal tender indefinitely.
This is because it is important to give people enough time to exchange their old banknotes for new ones, especially those who live in rural areas or who have difficulty accessing banking services.
Your reaction