The Central Bank of Nigeria (CBN) has denied allegations that it is considering withdrawing from circulation the new N200, N500, and N1,000 notes.
The apex bank’s Acting Director of Corporate Communications, Isa AbduMumimas, rejected the allegations as “unfounded speculation” in a statement issued on Sunday, saying that there is no plan to phase out the three freshly redesigned bank notes.
“The attention of the Central Bank of Nigeria (CBN) has been drawn to a fake news item circulating in the media, particularly in the social media space, suggesting that the Bank is contemplating the withdrawal of the recently redesigned N1000, N500 and N200 currency banknotes from circulation,” the statement partly read.
“We wish to state emphatically that such speculation is unfounded and a ploy by some interests to cause panic among members of the public.
“We wish to reiterate that the new and old currency notes have been circulating side by side just as the Bank has been taking delivery of a good quantity of the redesigned bank notes from the Nigerian Security Printing and Minting Company (NSPMC) Limited.”
“For the avoidance of doubt, the redesigned and old notes will continue to be accepted as legal tender. They will circulate side-by-side for transactions ahead of the December 31, 2023 deadline, when the old N1000, N500 and N200 banknotes will eventually be phased out,” the statement concluded.
Following complaints from many Nigerians, the CBN extended the deadline for the swap of old N200, N500, and N1,000 notes from January 31 to February 10, but the Supreme Court, in a suit filed by some states, held that the Federal Government, the CBN, and commercial banks must not continue with the February 10 deadline pending the determination of a notice in respect of the issue.
However, in a national broadcast on February 16, President Muhammadu Buhari directed the apex bank to release old N200 notes into circulation for 60 days — by April 10, 2023 — alongside new N200, N500, and N1,000 banknotes. In addition, he stated that previous N500 and N1,000 banknotes are no longer legal money in Nigeria.
The President’s instruction elicited a flurry of replies and harsh critiques, including from governors of his party, the All Progressives Congress (APC).
Governors Nasir El-Rufai (Kaduna), Abubakar Badaru (Jigawa), Rotimi Akeredolu (Ondo), and Umar Ganduje (Kano); Speaker of the House of Representatives, Femi Gbajabiamila; Minister of State for Labour and Employment, Festus Keyamo; and many stalwarts of the ruling APC openly condemned and faulted the President’s directive.
Leading Nigerian Senior Advocates such as Femi Falana and Mike Ozekhome also criticized the President’s move, claiming that he cannot overturn the country’s highest court.
On March 3, the Supreme Court ruled that old N200, N500, and N1,000 notes would be valid until December 31, 2023. This came after 16 Federation states filed a lawsuit challenging the legality or otherwise of the policy’s implementation.
The 16 states, led by Kaduna, Kogi, and Zamfara, had petitioned the Supreme Court to declare the policy null and unconstitutional since it harmed innocent Nigerians.
The court later declared that the President’s defiance of its February 8 order was a form of dictatorship, adding that Buhari violated the Federation’s Constitution by issuing directions for the CBN to redesign the Naira.
Following the Supreme Court’s March 3 decision, the Presidency, CBN, and AGF remained silent, leaving many bank customers and Nigerians perplexed, as the ruling contradicted the President’s February 16 directive that old N500 and N1000 notes are banned while old N200 notes remain valid until April 10.
However, the Presidency broke its silence on March 13, claiming that the President never told the CBN or the AGF not to obey the Supreme Court’s order.
