Explainer: What happens to your old ₦500 and ₦1000 notes after Buhari’s address to the nation?
On Thursday, February 16, 2023, President Muhammadu Buhari addressed the nation over the crises caused by the scarcity of redesigned naira notes. Since January 2023, Nigerians who deposited their old N200, N500 and N1000 notes in the bank expecting to get the newly redesigned notes were left perplexed due to the scarcity. This resulted in long queues at ATM terminals and increased charges at POS kiosks.
To stem the tide of the growing tension which has resulted in the burning of banks in some parts of the country and attack against bankers, President Buhari announced that the old N200 notes will continue to remain legal tenders till April 10 which is another 60-day extension.
He said: “To further ease the supply pressures particularly to our citizens, 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 February 10, 2023 to April 10 2023 when the old N200 notes ceases to be legal tender.”
So what becomes of the old ₦500 and ₦1000 notes? President Buhari only offers a one-sentence solution saying “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.”
Many Nigerian particularly those online are wondering whether the old ₦500 and ₦1000 notes remain legal tender until April 10 while some argue that they can be deposited in the bank. This is however not as clear as it seems as the president’s directive does not explicitly mention the depositing of those notes in the bank.
Prior to today, the CBN had insisted that there was no going back on the February 10 deadline of the old notes and that they remain invalid from that day.
The apex bank also provided a link to its website where people who want to return old naira notes can apply, fill out a form, generate a reference and print out a receipt to be submitted at any CBN branch with the notes.
What this means is that the old N200 and N500 notes remain invalid and can only be deposited at any CBN office. No clarification has been made about the “other designated points”
A banker who spoke to Neusroom but preferred not to be named said they have not received any directive to accept the old N500 and N1,000 notes and so will continue to treat them as invalid.
“A few people have come to the bank to deposit their old N500 and N1,000 notes citing the president’s morning broadcast but we did not collect them as we do not have an express circular from the CBN to do so.”
