Naira Scarcity : CBN Gov Gives Update on Old Naira Note Expiring Date
The Central Bank of Nigeria (CBN) has clarified that old 200, 500, and 1000 naira notes will continue to be accepted as legal tender even after the December 31, 2023 deadline. This announcement comes in response to concerns raised by Nigerians just two months before the deadline, amid reports of cash shortages in some states. The CBN official assured the public that both old and new banknotes can still be used for transactions.
Gradual Phase-Out to Prevent Hardships:
The CBN emphasized that the phasing out of the old notes will be a gradual process to avoid causing additional hardships for the people. The goal is to prevent a repeat of the cash shortages experienced earlier in the year when the old notes were initially set to be phased out.
Background and Previous Issues:
In March 2023, following a Supreme Court verdict, the CBN had initially announced that the old banknotes would no longer be in circulation after the end of 2023. However, the initial directive to deposit old notes before January 31, 2023, led to cash shortages in February, causing hardships for citizens and prompting protests and attacks on banks in some parts of the country.
Conclusion:
The CBN’s decision to allow the old naira notes to remain legal tender beyond the December deadline aims to provide stability and prevent further disruptions in the financial system. This clarification should alleviate concerns and ensure a smoother transition for both businesses and the public.