Old naira notes still legal tender, Nigeria’s central bank
Nigeria’s central bank will comply with a court order earlier this month by allowing old bank notes to remain legal tender until the end of the year, giving expectations that this would help the economy’s severe cash shortages, according to a press statement late on Monday.
The Central Bank of Nigeria (CBN) was instructed to continue using the old 1,000, 500, and 200 naira notes until December 31 by the Supreme Court on March 3. After creating significant hardship and outrage, the initial withdrawal of the notes from circulation was turned into an electoral issue.
The CBN stated that it was following the law and that new notes of equal value would circulate in place of the older ones. A statement from the Nigerian president earlier on Monday night claimed that President Muhammadu Buhari had not urged the CBN to disregard the court ruling.
It stated, “The CBN has no reason for refusing to comply with court orders on the excuse of awaiting instructions from the President.
The lack of naira notes has enraged individuals, some of whom have stormed banks and set cash-dispensing machines on fire. In a country where most people rely on cash for everything from buying food from markets to taxi fares, the shortages of naira notes have angered citizens.