BUSINESS

CBN extends validity of N200, N500, N1,000 notes infinitely

The Central Bank of Nigeria (CBN) has extended the validity of the old N200, N500 and N1,000 banknotes infinitely.

Isa AbdulMumin, director, CBN’s corporate communications, said the decision conformed to international best practices. He also said it will “forestall a repeat of earlier experiences.”

He stressed that “all banknotes,” based on “Section 20(5) of the CBN Act 2007, will continue to remain legal tender, ad infinitum even beyond the initial December 31, 2023, deadline.”

“The Central Bank of Nigeria is working with the relevant authorities to vacate the subsisting court ruling on the same subject.

“Accordingly, all CBN branches across the country will continue to issue and accept all denominations of Nigerian banknotes, old and redesigned, to and from deposit money banks.

“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 utmost care, to safeguard and protect the lifecycle of the banknotes.

“Also, the general public is encouraged to embrace alternative modes of payment, e-channels, for day-to-day transactions.”

The CBN, under its former governor, Godwin Emefiele, introduced redesigned the affected banknotes. The policy, at the time, spelt hardship for Nigerians as many were unable to withdraw their deposits after submitting them in exchange for the newer banknotes.

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