CBN: We Didn’t Direct Banks to Collect Old Banknotes from Customers

James Emejo in Abuja

The Central Bank of Nigeria (CBN) yesterday refuted media reports that it had authorised the Deposit Money Banks (DMBs) to collect the old N500 and N1,000 banknotes from customers and members of the public.

CBN Director, Corporate Communications Department, Mr. Osita Nwanisobi, disclosed this in a statement.

He said, “The attention of the Central Bank of Nigeria has been drawn to some fake and unauthorised messages quoting the CBN as having authorised the Deposit Money Banks to collect the old N500 and N1,000 banknotes.”

The central bank clarified that for the avoidance of doubt, and in line with President Muhammadu Buhari’s broadcast on February 16, 2023, the CBN has been directed to only reissue and re-circulate the old N200 banknotes as legal tender for 60 days up till April 10, 2023.

The CBN added, “Members of the public should therefore disregard any message and/or information not formally released by the Central Bank of Nigeria on this subject.

“Media practitioners are advised to please, verify any information from the correct sources before publication.”

The central bank earlier in January clarified that the old denominations of N1,000, N500, and N200 banknotes would be effectively retired and cease to be legal tender after the February 10, 2023 deadline for the return of the notes following the currency redesign programme.

Nwanisobi, in a statement explained that the old notes would cease to be legal tender after the deadline, and “can no longer be used for any form of transaction afterwards.”

The clarification puts paid to misconceptions, speculations and reports suggesting that the old denominations may still be tenable as a medium of exchange.

The CBN Governor, Mr. Godwin Emefiele, recently obtained the approval of President Muhammadu Buhari for a 10-day extension of the January 31, 2023 deadline for the return of old naira notes following the currency redesign programme to February 10, 2023. 

He said the gesture was to allow for the collection of more old notes which are legitimately held by Nigerians and achieve more success in cash swaps, particularly in rural communities – after which all old notes outside the CBN lose their legal tender status.

The central bank, in compliance with Sections 20 (3) and 22 of the CBN Act, further offered a seven-day grace period beginning from February 10 to February 17, allowing Nigerians to deposit their old naira notes at the CBN after the February deadline when the old currency would have lost its legal tender status.

The grace period had been misinterpreted by many to mean that the old naira notes could still be valid for transactions.

Buhari had directed the CBN to reissue and re-circulate the old N200 banknotes to ameliorate the hardship faced by Nigerians in accessing the redesigned naira notes.