Reps asks CBN to withdraw old naira notes, circulate new ones

The House of Representatives on Thursday asked the Central Bank of Nigeria (CBN) to initiate a gradual withdrawal of old naira notes and ensure the circulation of new N200, N500, and N1,000 denominations.

The Green Chamber also directed the apex bank to instruct commercial banks to conduct transactions exclusively using the new notes to facilitate the withdrawal of the old currency.

This resolution followed the adoption of an urgent motion introduced by the lawmaker representing Ogbaru Federal Constituency in Anambra State, Victor Ogene during the plenary in Abuja.

The CBN introduced new N200, N500, and N1,000 notes in October 2022, with circulation beginning in December.

However, the withdrawal of old notes faced significant backlash from Nigerians, who experienced considerable hardship in obtaining the new currency.

Following numerous legal challenges, the Supreme Court extended the validity of the old notes till December 31, 2024, after which they will no longer be legal tender in Nigeria.

Ogene led the debate by recalling the challenges Nigerians faced during the naira redesign, emphasizing that the CBN’s failure to adequately circulate new notes has exacerbated difficulties in daily life.

“Going by the Supreme Court’s subsequent ruling and order, the N200, N500, and N1,000 notes shall cease to be legal tender, medium of exchange for goods and services in Nigeria, and shall also cease to be in circulation as from January 1, 2025,” he stated

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He warned that without proper preparations, Nigerians could face a chaotic situation similar to that of February 2023 when the old notes were abruptly withdrawn.

He criticized the CBN for not commencing public awareness campaigns to prepare citizens for the impending changes, suggesting the use of jingles, media announcements, and print materials at least three months prior to the deadline.

Ogene expressed concern that instead of gradually withdrawing the old currency, the CBN continues to issue it alongside the new notes for everyday transactions.

The House in its resolution urged the CBN to issue additional new N200, N500, and N1,000 notes and to begin the gradual withdrawal of old notes before the December 31 deadline.

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