CBN Speaks as Banks Resume Paying Nigerians in Old Naira Notes, Customers Kick

• The Central Bank of Nigeria has spoken about banks paying customers in old naira notes
• The payments have been met with widespread rejection forcing customers who collected the old notes to return them
• Despite the Supreme Court's 10-month extension, Nigerians are still uncertain about the old 1000 and 500 banknotes' legality as legal tender

The Central Bank of Nigeria (CBN) has denied telling banks to pay customers with old naira notes despite a recent Supreme Court ruling allowing their use until December 31.

Isa Abdulmumin, the CBN spokesman who spoke to DailyTrust, said there was no official statement yet.

However, a senior management source said:

“Both the old and new notes are legal tender, and banks are currently issuing them to customers. Nigerians should not reject any note, whether old or new.”

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Legit.ng had reported that commercial banks began dispensing the old N500 and N1000 Naira notes.

Yet the attempt has been resisted, as customers complained they could not use the money for transactions.

Nigerians ask CBN to obey

The banking industry is highly regulated, and commercial banks take instructions from the CBN.

The silence from the CBN has further deepened the confusion around the acceptability of old N500 and N1,000 notes for business transactions.

However, Uju Ogubunka, president of the Bank Customers Association of Nigeria, has urged the CBN to obey the Supreme Court order, BusinessDay reports.

He said:

“There should not be confusion. If the highest court has decided that the old high-value naira notes remained legal tender until December 31, 2023, I think that is what it should be.

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“The government should make a pronouncement. Their silence could mean that they are refusing to obey the court of the land.”

Nigerians speak on old naira notes

Aisha Bakare, a food provision trader at Mile 12 Market, Lagos, said:

“I won’t accept the old N500 and N1,000 because neither the President nor the CBN has made any statement since the ruling."

“When they wanted to recirculate the old N200 note, the president addressed the country and made a statement. He or CBN has to do the same thing for the old N500 and N1,000 notes before I will start accepting them."

Anthony Okechukwu, a spare part dealer at Owode Market, Lagos, added:

“If you are to buy goods worth N2,000, you will pay N2,500 if you are paying with old N500 and N1,000 notes, and N2,000 with the new notes or old N200 notes."

CBN plans to pump new naira notes into circulation

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Reports: Nigerian banks begin payment of old naira notes to customers, set limit

In another report, the CBN was said to be preparing to make another N500bn new naira notes available to banks and, more crucially, Nigerians.

Due to the lack of new naira notes, Nigerians and PoS operators have been forced to continue trading with the old currency.

It is expected that the apex plan to pump more cash, pushing the value of new naira notes in circulation closer to N1 trillion.

Source: Legit.ng