During a plenary session on Thursday, the House of Representatives called on the Central Bank of Nigeria (CBN) to begin sensitizing Nigerians about the upcoming deadline for the use of old naira notes and to instruct commercial banks to halt the distribution of the old N200, N500, and N1,000 denominations.
The resolution came after a motion was sponsored by Afam Ogene, a member of the Labour Party from Anambra State. The motion, titled “Need for the CBN to Sensitize Nigerians About the Non-Legal Tender Status of Old Naira Notes from January 1, 2025,” emphasized the need for awareness to prevent chaos when the old notes are officially phased out.
The call from the House appears to contradict earlier rulings by the Supreme Court, which had stated that both the old and new notes would remain legal tender until further notice. The issue traces back to October 2022, when the CBN, under the leadership of then-Governor Godwin Emefiele, initiated a redesign of the N200, N500, and N1,000 notes, which were unveiled on December 23, 2022. The CBN initially set a deadline of January 31, 2023, for the withdrawal of old notes, which was later extended to February 10, 2023.
Legal challenges soon emerged, with states such as Kaduna, Kogi, and Zamfara filing a suit to halt the policy. The Supreme Court intervened, issuing an order on February 15, 2023, restraining the CBN from enforcing the deadline, citing issues with the timing and implementation of the policy. The court further extended the deadline for the use of old notes to December 31, 2023.
However, the situation changed on November 29, 2023, when the Supreme Court ruled that both old and new naira notes would continue to coexist as legal tender until further directives. Despite this, Afam Ogene pointed out that according to a Supreme Court judgment, the old naira notes will cease to be legal tender starting January 1, 2025.
Ogene expressed concern that, with just about two months to the December 31, 2024, deadline, the CBN has not yet initiated any public awareness campaigns to prepare Nigerians for the transition. He emphasized the importance of starting jingles, TV and radio announcements, social media posts, and newspaper publications to ensure people are adequately informed.
“If we do not act now, Nigerians might face even worse chaos than what we experienced in February 2023,” Ogene said, referencing the period of cash scarcity and protests that accompanied the earlier deadline. He further criticized the CBN for continuing to mix old and new notes in circulation, instead of gradually phasing out the old currency.
The motion was put to a voice vote and was unanimously adopted by the House, with Deputy Speaker Benjamin Kalu presiding. As a result, the House has urged the CBN to increase the circulation of new notes and start withdrawing old ones ahead of the end-of-year deadline. Additionally, commercial banks have been directed to stop issuing the old notes and to participate actively in the gradual removal of these notes from circulation.
The House also mandated the Committee on Banking Regulations to monitor the CBN’s compliance with these directives and report back within 21 days.
The resolution marks a significant moment in the ongoing currency reform process in Nigeria and highlights the critical need for effective communication to avoid disruptions in the economy.
