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In October 2022, the former Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, unveiled plans to redesign and introduce a new series of three banknotes—₦200, ₦500, and ₦1,000. A three-month window was initially provided for the submission of old banknotes, a move that led to a cash shortage, adversely impacting the nation’s economy.
However, in March 2023, the Supreme Court ruled that the CBN had not adequately informed the public, ordering that the old notes would retain legal tender status alongside the new notes until December 31, 2023. Subsequently, the CBN discontinued its naira redesign policy just ten days after the court’s decision. Despite assurances from the governor regarding sufficient cash availability, the country grappled with a challenging cash shortage.
With the December 31 deadline approaching, the federal government recently sought an extension, expressing concerns about a potential economic crisis if the old notes were demonetized.
Today, the apex court has issued a ruling, nullifying the December 2023 deadline. The court decrees that the old banknotes will continue to be recognized as legal tender and accepted for transactions until further notice.
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