The Central banks of Nigeria have spoken about banks paying customers in old naira notes
There is confusion on the validity of old 1000 ad 500 banknotes as legal tender in Nigeria despite a Supreme Court order
Banks have started paying customers with the old notes despite widespread rejection by the general public
The Central Bank of Nigeria (CBN) has denied telling banks to pay old naira notes, despite a recent Supreme Court ruling allowing for their use until December 31.
Isa Abdulmumin, the CBN spokesman who spoke to DailyTrust, said there is no official statement yet.
However, a senior management source said:
“Both the old and new notes are legal tender, and banks are currently issuing them to customers. Nigerians should not reject any note, whether old or new.”
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Legit.ng had reported that commercial banks began dispensing the old N500 and N1000 Naira notes.
Yet the attempt has been met with resistance, as customers complained that they cannot use the money.
Impact of CBN silence
The banking industry is highly regulated and commercial banks take instruction from the CBN in operation.
The silence from the CBN has further deepened the confusion around the acceptability N500 and N1,000 notes for a business transaction.
However, Uju Ogubunka, president of Bank Customers Association of Nigeria has urged the CBN to obey the Supreme Court order.
He said it is wise for the Federal Government or the CBN to make pronouncements to ease off tensions.
“There should not be confusion. If the highest court has decided that the old high-value naira notes remained legal tender until December 31, 2023, I think that is what it should be,” he said. “The government should make a pronouncement. Their silence could mean that they are refusing to obey the court of the land.”
Nigerians speak on old naira notes
Aisha Bakare, a food provision trader at Mile 12 Market, Lagos said:
“I won’t accept the old N500 and N1,000 because neither the President nor the CBN has made any statement since the ruling.”
“When they wanted to recirculate the old N200 note, the president addressed the country and made a statement. He or CBN has to do the same thing for the old N500 and N1,000 notes before I will start accepting them.”
Anthony Okechukwu, a spare part dealer at Owode Market, Lagos added:
“If you are to buy goods worth N2,000, you will pay N2,500 if you are paying with old N500 and N1,000 notes, and N2,000 with the new notes or old N200 notes.”
CBN plans to pump new naira notes into circulation
In another report, the CBN is preparing to make another N500bn new naira notes available to banks and, more crucially, Nigerians.
Due to the lack of new naira notes, Nigerians and PoS operators have been forced to continue trading with the old currency.
