The House of Representatives has called on the Central Bank of Nigeria (CBN) to begin the gradual withdrawal of old naira notes, urging the apex bank to ensure that Nigerians have access to new notes in the N200, N500, and N1,000 denominations.
This resolution was passed on Thursday, following a motion of urgent national importance sponsored by Mr. Victor Ogene, the representative for Ogbaru Federal Constituency in Anambra State, during the House’s plenary session.
The House also directed the CBN to instruct Money Deposit Banks to begin transacting business exclusively with new naira notes, thereby initiating the gradual removal of old notes from circulation.
In October 2022, the CBN introduced new naira notes for the N200, N500, and N1,000 denominations, with circulation commencing in December of the same year. However, the policy met significant resistance, causing widespread hardship across the country as millions of Nigerians struggled to access the new notes.
After months of public outcry and legal challenges, the Supreme Court ruled that the old notes would remain legal tender until December 31, 2024. After this date, they will no longer be accepted for transactions.
Mr. Ogene, a member of the Labour Party, led the debate, recalling the immense difficulties Nigerians faced when the naira was redesigned. He emphasized that the CBN’s failure to circulate sufficient new notes at the time had caused serious disruption to daily life.
Referring to the upcoming deadline, he warned, “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.”
With only two months remaining before the deadline, Ogene expressed concern that the CBN had not shown sufficient readiness to educate Nigerians about the impending changes. He cautioned that without proper awareness and a clear transition plan, the country could face a repeat of the chaos that occurred in February 2023, when cash shortages brought many businesses and households to a standstill.
Ogene argued that the CBN should have already initiated a comprehensive public awareness campaign using various media platforms, including jingles, television and radio announcements, social media, and print publications, to inform Nigerians about the transition.
He also raised concerns that instead of gradually phasing out the old notes, the CBN was still releasing them into circulation, creating confusion about the future of the currency.
Following Ogene’s remarks, the House passed a resolution urging the CBN to take immediate action. The resolution called on the CBN to:
- Issue more new N200, N500, and N1,000 notes and begin the gradual withdrawal of old notes from circulation before the December 31, 2024 deadline.
- Direct commercial banks to stop issuing the old notes to customers and to start mopping up the old currency.
- Launch a nationwide awareness campaign to ensure that Nigerians are fully informed and prepared for the transition.
The motion was referred to the House Committee on Banking Regulations for further legislative action.
As the deadline approaches, the CBN is under increasing pressure to ensure a smooth and orderly transition to the new naira notes.