Naira Scarcity: Buhari approves use of old N200 notes, shifts deadline

Nigeria On Thursday, President Muhammadu Buhari issued a directive to the Central Bank of Nigeria (CBN) allowing the coexistence of the old 200 naira notes and the redesigned 200, 500, and 1000 naira notes.

In a national broadcast that was broadcast on national stations, Buhari gave CBN the order.

The old 200, 500, and 1000 naira notes will remain valid until April 10th, according to the president.

“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 Feb. 10, 2023, to April 10 2023,” Buhari said.

“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.”

Buhari granted the Central Bank of Nigeria's request to redesign the Nigerian currency notes in October 2022. The old naira notes will be phased out by the end of January 2023. Later, he extended the deadline till February 10th.

Prior to the CBN's notification to businesses to stop accepting old naira notes expiring, the Supreme Court issued a decision to suspend the deadline.

The implementation of the Naira redesign policy, which resulted in a shortage of cash, severely impacted businesses, commercial services, and individuals. This culminated in violent protests and bank attacks by individuals in various parts of Nigeria.

In the midst of the rage and frustration, CBN announced on February 14 that the old N200, N500, and N1000 notes will no longer be accepted as legal tender in Nigeria as of Friday, February 10, 2023.

Buhari did, however, express sympathy for Nigerians' challenges in obtaining the new Naira notes during his national address.

“Let me assure Nigerians that our admin. will continue to assess the implementation with a view to ensuring that Nigerians are not unnecessarily burdened,” Buhari said. “In this regard, the CBN shall ensure that new notes become more available & accessible to our citizens through the banks.”

He stated that the redesign of the Naira was intended to reduce inflation and corruption while enhancing cash flow transparency to all areas of the Nigerian economy.

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