Withdraw old notes, circulate new ones, Reps urges CBN

The House of Representatives, on Thursday, urged the Central Bank of Nigeria to commence the gradual withdrawal of old naira notes and make available to Nigerians new notes in N200, N500, and N1,000 denominations.

This is just as the Green Chamber charged the apex bank to direct Money Deposit Banks to transact businesses with their customers in new naira notes to kick off the mopping up of the old ones.

The resolution of the House followed the adoption of a motion of urgent national importance, sponsored by the member representing Ogbaru Federal Constituency, Anambra State, Mr Victor Ogene, during Thursday’s plenary session.

Recall that the CBN in October 2022, introduced new N200, N500, and N1,000 notes and commenced the circulations in December of the same year.

The apex bank’s decision to withdraw the old notes was meant with stiff resistance from millions of Nigerians who went through untold hardship in search of the then scarce new notes.

After a series of litigations, the Supreme Court fixed the December 31, 2024 deadline after which the old notes would no longer serve as legal tenders in the country.

Leading the debate, the Labour Party lawmaker recalled the difficulty Nigerian went through with the decision to redesign the naira, adding that CBN’s inability to circulate adequate new notes, came short of making life hellish in 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 said, stressing that with barely two months to the deadline, the lender of last resort has not shown sign of its readiness to sensitise Nigerians to prepare for what awaits them.

He warned that Nigerians will wake up into a similar chaotic situation, reminiscent of what happened in February 2023, when the old N200, N500, and N1,000 notes shall cease to be legal tender and medium of exchange for goods and services as from January 1, 2025.

He argued that the CBN ought to have started public awareness campaigns including the use of jingles, television and radio announcements, social media postings, flyers, and newspaper publications, three months before the deadline.

He also expressed concern that rather than a gradual withdrawal, the CBN is still comfortably releasing the old N200, N500, and N1,000 notes simultaneously with the new notes for the conduct of business in the country.

The House resolved to “Urge Central Bank of Nigeria (CBN) to issue more new N200, N500 and N1,000 notes and begin the gradual withdrawal of the old notes from circulation before the deadline of December 31, 2024;
“ To urge the Central Bank of Nigeria, CBN, to order commercial banks to forthwith stop cash payment to their customers with old N200, N500 and N1,000 notes but instead, engage in gradual mopping up of the old notes;
“Urge the Central Bank of Nigeria, CBN to kick-start awareness programmes for Nigerians to be aware and prepare for the deadline of December 31, 2024.”

The House, following the adoption of the motion, referred it to its Committee on Banking Regulations for further legislative action