The House of representatives says the deadline for old naira notes to cease being legal tender is December 31, 2024.
During plenary on Thursday, the lower legislative chamber
asked the Central Bank of Nigeria (CBN) to sensitise Nigerians about the
deadline and to order commercial banks to stop payment of old N200, N500 and
N1,000 notes to customers.
The green chamber passed the resolution during plenary,
following the adoption of a motion sponsored by Afam Ogene, a member of the
Labour Party from Anambra state.
The resolution of the house contradicts the judgment of the
supreme court and the position of the CBN.
BACKGROUND
In October 2022, the CBN under Godwin Emefiele, the former
governor, redesigned the N200, N500 and N1,000 notes.
The redesigned notes were unveiled on December 23, 2022.
The deadline for using the old notes as legal tender was
January 31, 2023, but it was further extended to February 10.
In February, a suit was initiated by some states, including
Kaduna, Kogi, and Zamfara, challenging the implementation of the policy.
Five days later, the supreme court restrained the CBN from
giving effect to the deadline, following an ex parte application brought by the
three states.
They supreme court faulted the apex bank’s policy, saying
the timing and implementation were defective.
The policy caused severe hardship, leading to cash scarcity
and protests across the country.
On November 19 2023, the CBN said the old naira notes remain
legal tender and will be used indefinitely.
In March 2023, the supreme court extended the deadline to
phase out old naira notes to December 31, 2023.
On November 29, 2023, the supreme court ruled that old and
new naira notes will co-exist as legal tender until further notice.
THE MOTION
Moving the motion titled: ‘Need for the CBN to sensitize
Nigerians About the Non-legal Tender Status of Old Naira Notes from January 1
2025’, Ogene claimed that by the supreme court judgment, the old naira 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”.
He said the CBN has “not shown any sign of sensitisation or
kick-started any awareness programme to remind Nigerians about this important
economic policy to make them prepare for the December 31 deadline”.
The lawmaker said Nigerians will be “plunged into more
chaotic situations than 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″.
The legislator said the CBN ought to have started public
awareness, such as jingles, television and radio announcements, social media
postings, flyers, daily newspapers and periodic magazine publications three
months “before the deadline but now with about two months to the deadline, yet
nothing to show that the apex bank is prepared for the exercise”.
He said CBN is still “comfortably releasing the old N200,
N500 and N1,000 notes mixed with the new N200, N500 and N1,000 notes for
business transactions in Nigeria, instead of the gradual mopping up of the old
notes from circulation or ordering commercial banks to do so by issuing only
the new notes”.
The motion was unanimously adopted without debate when it
was put to a voice vote by Benjamin Kalu, the deputy speaker, who presided over
plenary.
Consequently, the house asked the 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”.
The house further urged the 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” and to
“kick-start awareness programmes for Nigerians to be aware and prepare for the
deadline of December 31, 2024”.
The green chamber mandated the committee on banking
regulations to ensure compliance and report back to the house within 21 days.
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