Buhari Bans Old N500, N1000 Notes From Circulation
- As N200 note survives FG’s axe till April 10
- Directs CBN to open more collection centres
- Says policy checking money politics
BY EDMOND ODOK – With Nigerians still eagerly awaiting the Supreme Court of Nigeria’s pronouncement on the new Naira notes come February 22, President Muhammadu Buhari on Thursday declared the old N500 and N1000 notes as no longer legal tender in the country.
The President, who made the declaration in a national broadcast on Thursday morning, urged Nigerians to approach the Central Bank of Nigeria (CBN) and other designated places to swap the affected currencies.
He also ordered the extension of the validity of old 200 naira notes by 60 days, saying; ”To further ease the supply pressures particularly to our citizens, I have given approval to the CBN that the old N200 bank notes be released back into circulation and that it should also be allowed to circulate as legal tender with the new N200, N500, and N1000 banknotes for 60 days from February 10, 2023 to April 10 2023 when the old N200 notes ceases to be legal tender.
However, acknowledging the untold hardship Nigerians are going through because of the Naira redesign policy, President Buhari said the Central Bank of Nigeria (CBN) has been directed to make new notes available across the country without further delay.
According to him; “In line with Section 20(3) of the CBN Act 2007, all existing old N1000 and N500 notes remain redeemable at the CBN and designated points.
“Considering the health of our economy and the legacy we must bequeath to the next administration and future generations of Nigerians, I admonish every citizen to strive harder to make their deposits by taking advantage of the platforms and windows being provided by the CBN.
“Let me assure Nigerians that our administration will continue to assess the implementation with a view to ensuring that Nigerians are not unnecessarily burdened. In this regard, the CBN shall ensure that new notes become more available and accessible to our citizens through the banks.”
Making specific reference to the upcoming general elections, President Buhari further maintained that the CBN’s monetary policy has reduced the influence of money in politics, saying; “Fellow citizens, on the 25th of February, 2023 the nation would be electing a new President and National Assembly members. I am aware that this new monetary policy has also contributed immensely to the minimization of the influence of money in politics.
“This is a positive departure from the past and represents a bold legacy step by this administration, towards laying a strong foundation for free and fair elections,” he said.
Meanwhile, some commentators are already arguing that the latest presidential order seems contrary to the Supreme Court injunction, restraining the CBN and Federal Government from phasing out the old notes by the February 10, 2023 deadline.
This is against the backdrop of the suit by some governors who sought the apex Court’s intervention after their meeting with the President to complain that the Naira redesign was causing hardship for ordinary Nigerians.
Obviously shunning the President’s request for seven days grace to consider further action on the matter, the Governors filed a suit at the Supreme Court two days to the deadline and obtained a restraining order on the CBN banning the use of the old naira notes from February 10, 2023
However, the CBN’s insistence through its Governor, Godwin Emefiele that there was no need for a shift in the deadline seems to have sparked confusion in the financial system with banks, petrol stations, malls and many other outlets rejecting the old notes.
On their part, Nigerians have been spending several hours queuing to access the new notes that clearly are scarce in circulation.
As a the last count, about 10 State governments have now joined the suit challenging the CBN Naira swap policy with the Supreme Court adjourning the case to February 22 for hearing
