Nigeria

Breaking: Banks Resume Paying Nigerians Old Notes

Commercial banks in Nigeria have started issuing out old N500 and N1000 notes to customers, according to reports. Three banks in Abuja and o...

Chima Joseph Ugo
Updated March 6, 2023 at 1:40 PM
Breaking: Banks Resume Paying Nigerians Old Notes

Commercial banks in Nigeria have started issuing out old N500 and N1000 notes to customers, according to reports. Three banks in Abuja and one in Kano were found to be giving out the phased-out notes on Monday, while some banks were still giving out old N200 notes. This comes after a recent unanimous Supreme Court judgement, which held that the directive by President Muhammadu Buhari to the Central Bank of Nigeria (CBN) for the redesigning and withdrawal of old notes of N200, N500 and N1,000, without consultation with the states, the Federal Executive Council (FEC) and the National Council of State and other stakeholders, was unconstitutional. The court observed that no reasonable notice was given before the implementation of the policy as provided under the CBN Act. The directive, which was issued in 2019, had called for the phasing out of the old notes by January 2022, and their replacement with new ones. However, the apex court's ruling means that the old notes must remain in circulation until December. The CBN is yet to issue a directive on the matter, and it remains to be seen whether other banks across the country will follow suit. Some analysts have expressed concern that the reintroduction of the old notes could lead to confusion and fraud, as some people may try to pass off fake notes as genuine.
Commercial banks in Nigeria have started issuing out old N500 and N1000 notes to customers, according to reports. Three banks in Abuja and one in Kano were found to be giving out the phased-out notes on Monday, while some banks were still giving out old N200 notes. 

This comes after a recent unanimous Supreme Court judgement, which held that the directive by President Muhammadu Buhari to the Central Bank of Nigeria (CBN) for the redesigning and withdrawal of old notes of N200, N500 and N1,000, without consultation with the states, the Federal Executive Council (FEC) and the National Council of State and other stakeholders, was unconstitutional.

The court observed that no reasonable notice was given before the implementation of the policy as provided under the CBN Act. The directive, which was issued in 2019, called for the phasing out of the old notes by January 2022, and their replacement with new ones. However, the apex court's ruling means that the old notes must remain in circulation until December.

The CBN is yet to issue a directive on the matter, and it remains to be seen whether other banks across the country will follow suit. Some analysts have expressed concern that the reintroduction of the old notes could lead to confusion and fraud, as some people may try to pass off fake notes as genuine.

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