Lawmaker Criticizes CBN’s Stance On Validity Of Old And New Naira Notes

Afam Ogene, the Labour Party Caucus Leader in the House of Representatives, has voiced strong criticism against the Central Bank of Nigeria (CBN) for its ambiguous stance on the concurrent validity of old and new Naira notes. Ogene’s concerns followed recent clarifications by the CBN regarding a Supreme Court ruling, which, according to the bank, did not specify a firm deadline for when the old N200, N500, and N1000 notes would cease to be legal tender.

Ogene, who initiated a motion on October 24 calling for the CBN to provide clear guidance on the validity of the old and new Naira notes, argued that the bank’s lack of a definitive policy on the matter has left the public confused. His motion, titled “Need for Central Bank of Nigeria to Sensitise Nigerians about the Non-Legal Status of Old Naira Notes from January 1, 2025,” pushed for public awareness regarding the CBN’s transition timeline, but it also contained an unintended factual error regarding the Supreme Court’s stance on concurrent currency validity.

Ogene acknowledged the unintentional omission in the House’s motion but criticized the CBN’s inconsistent responses, labeling the situation as an “embarrassing lack of policy direction.” He noted that the CBN’s response to the House resolution, which stated that the motion was “calculated to disrupt the country’s payment system,” failed to address the central issue and instead added to the public’s uncertainty.

“Which country in the world runs its economy with two different sets of unidentical currency notes?” Ogene questioned. “The CBN’s aim in introducing new notes was to gradually phase out the old ones, but its inaction on setting a clear policy has caused confusion and eroded public trust.”

Additionally, Ogene criticized the poor condition of currency notes being issued from banks, noting that citizens frequently lose up to N10,000 per N100,000 withdrawn due to torn and mutilated notes. He urged the CBN to fulfill its regulatory role and provide clarity to Nigerians, rather than “hiding behind legal ambiguities.”

Following the House motion, the Committee on Banking Regulations has been directed to engage with the CBN and report back in 21 days. The goal is to provide Nigerians with clear answers on the ongoing issue of Naira validity and to prevent further disruption in the country’s payment system.