House of Reps urges CBN to withdraw old naira notes

Friday, October 25, 2024 – The House of Representatives has called on the Central Bank of Nigeria (CBN) to ensure the complete withdrawal of old N200, N500, and N1,000 notes before the January 1, 2025, deadline.

The lawmakers stressed the need for the CBN to increase the circulation of the redesigned notes and begin a gradual mopping-up of the old currency.

In a motion raised by Adam Victor Ogene (LP, Anambra), the House expressed concerns over the lack of public sensitization by the CBN, warning that Nigerians may face a repeat of the hardship seen during the chaotic currency swap in 2023. Ogene highlighted the Supreme Court’s ruling that the old notes would cease to be legal tender on January 1, 2025, and noted that the CBN has yet to launch any significant awareness efforts.

He recalled the “hardship, frustration, controversy, and chaotic situation” that arose from the 2023 currency swap and expressed concerns that the CBN’s failure to supply enough new notes led to severe difficulties across the country. “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,” Ogene stated.

He further criticized the continued circulation of the old naira notes alongside the new ones, emphasizing that rather than a phased withdrawal, the CBN is “still comfortably releasing the old N200, N500, and N1,000 notes mixed with the new notes for business transactions.” Ogene urged the CBN to direct commercial banks to issue only the new notes and to start gradually removing the old currency from circulation.

Ogene also raised concerns that the CBN has not taken any steps to raise public awareness about the looming deadline, despite being just months away. He noted that by now, the apex bank should have started “public awareness, such as jingles, television and radio announcements, social media postings, flyers, daily newspapers, and periodic magazines” to ensure Nigerians are prepared for the transition.

With the January 1, 2025, deadline fast approaching, the House urged the CBN to take immediate action, warning that the country could face even greater economic disruption than it did during the 2023 currency change if the necessary steps are not taken.