Nigeria Bins Demonetisation

The Central Bank of Nigeria (CBN) has confirmed that it will allow old banknotes that were due to be phased out in December to remain legal tender indefinitely, following a ruling by the country’s Supreme Court.

The CBN began replacing high denomination naira notes with redesigned ones in December 2022. It had planned to end their use from February until a court ruled that the notes should remain in circulation 31 December after the plans were challenged by state governors. That deadline has also now been lifted by the Supreme Court.

‘Without prejudice, the Central Bank of Nigeria wishes to inform the general public of its desire to extend the legal tender status deadline of the old design of N200, N500 and N1,000 denominations, ad infinitum,’ it said in a statement. ‘This is in line with international best practices and to forestall a repeat of earlier experiences.’