Begin Phase Out Of Old Naira Notes,House Tells CBN

      Mohammed Shosanya

The Federal House House of Representatives has implored the Central Bank of Nigeria (CBN) to initiate a phased withdrawal of old naira notes from circulation.

The lawmakers urged the apex bank to prioritize the availability of new naira notes in the N200, N500, and N1,000 denominations, ensuring a smooth transition for the public.

The House passed this resolution following the adoption of a motion of urgent national importance.

The motion, sponsored by Hon. Victor Ogene, member representing Ogbaru Federal Constituency of Anambra State,was deliberated during Thursday’s plenary session.

The Central Bank of Nigeria (CBN) had introduced new N200, N500, and N1,000 banknotes in October 2022, with the circulation of the redesigned currency beginning in December of the same year.

The Central Bank’s decision to withdraw the old currency notes faced significant resistance from millions of Nigerians, who endured severe hardships trying to obtain the scarce new notes at the time.

Sequel to a series of legal battles,the Supreme Court set a final deadline of December 31, 2024, after which the old notes will cease to be legal tender in the country.

Leading the debate,the Labour Party lawmaker highlighted the immense hardship Nigerians endured due to the decision to redesign the naira, pointing out that the Central Bank of Nigeria (CBN)’s failure to adequately circulate the new notes nearly plunged the country into a crisis.

Referring to the Supreme Court’s ruling, the lawmaker emphasized that the N200, N500, and N1,000 notes would cease to be legal tender and a medium of exchange in Nigeria starting January 1, 2025. “With just two months remaining until the deadline, the CBN has yet to demonstrate any readiness to properly sensitise Nigerians on the implications of this transition,” Ogene warned.

He cautioned that Nigerians could face a chaotic situation similar to the one experienced in February 2023, when the old N200, N500, and N1,000 notes were withdrawn from circulation as legal tender. With the deadline set for January 1, 2025, these denominations will no longer be accepted for goods and services.

He further argued that the Central Bank of Nigeria (CBN) should have begun a robust public awareness campaign at least three months prior to the deadline. This campaign, he suggested, should include jingles, television and radio announcements, social media posts, flyers, and newspaper publications to inform and prepare the public adequately.

“He also raised concerns that, instead of a gradual phase-out, the Central Bank of Nigeria (CBN) continues to release the old N200, N500, and N1,000 notes alongside the newly redesigned currencies for daily business transactions across the country.

Following the adoption of the motion, the House referred the matter to its Committee on Banking Regulations for further legislative review and action.