Finally, CBN Makes U-Turn, Says old N200, N500, 1000 Notes Remain Legal Tender till December 31

After a long spell of deafening silence and seeming disobedience to the rule of law, the Central Bank of Nigeria, CBN, on Monday, finally declared that the old N200, N500, N1,000 banknotes remain legal tender till December 31, 2023.

This is in sync with the order of the Supreme Court, 10 days ago, that the old currencies should circulate concurrently with the new currencies till the end of the year.

The apex bank’s Acting Director of Corporate Communications, Mr. Isa AbdulMumin, disclosed the CBN’s decision to obey the order in a statement on Monday.

His exact words:

“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, and by extension, the operations of the Central Bank of Nigeria (CBN), as a regulator, Deposit Money Banks operating in Nigeria have been directed to comply with the Supreme Court ruling 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 statement read.

The Supreme Court had, on March 3, 2023, ordered that the old N200, N500 and N1000 notes remain valid till December 31, 2023.

This was sequel to a suit filed by 16 states  challenging the legality or otherwise of the introduction and implementation of the naira redesign  policy.

The 16 states led by Kaduna, Kogi and Zamfara had prayed the apex court to void and set aside the policy on the ground that it was inflicting hardships on innocent Nigerians.

The Supreme Court subsequently ruled that President Muhammadu Buhari’s disobedience of its February 8 order is a sign of dictatorship, adding that the President breached the Constitution of the Federation in the way he issued directives for the re-designing of the Naira by the CBN.

After the March 3 judgement by the Supreme Court, the Presidency, CBN and the AGF kept mum, throwing many bank customers and Nigerians into confusion as the ruling of the apex court contradicted the directive of the President on February 16 that old N500 and N1000 notes are banned and old N200 notes remain valid till April 10, 2023.