Tinubu’s advisory council suggests extending the legal tender status of old naira notes until December 2024.

The President Bola Tinubu Policy Advisory Council has requested that the federal government extend the maturity date of the old naira notes to December 31, 2024, in view of the present economic conditions.

 

A report titled “Policy Advisory Council Report: National Economy Sub-committee” contained the proposal.

The council recommended that the old currency notes be phased out gradually, on a monthly basis.

The memo states, “Extend the December 31st, 2023, deadline to December 31st, 2024 (if required)”.

Monthly, deposit five percent of fresh notes through the money banks, and withdraw the same amount of old notes through the money banks every twelve to eighteen months.

Former Central Bank of Nigeria (CBN) governor Godwin Emefiele revealed plans to restructure the naira in October 2022 in an effort to manage the money supply and support law enforcement in combating illegal financial flows.

The expiration for the old notes’ validity was set for January 31, 2023, following the debut of the new naira notes on November 23, 2022.

However, this was then extended until February 10 in the midst of a national outcry about the policy’s allegedly inadequate execution.

As national unrest escalated, a supreme court ruling on March 3 declared the apex bank’s currency redesign programme unconstitutional.

The previous N200, N500, and N1000 notes are still legal tender until December 31, 2023, according to a seven-member panel of the supreme court that rendered a decision in a lawsuit brought by three states of the union.

The CBN obeyed the order and told commercial banks in a statement that the old N200, N500, and N1000 notes remain legal money until December 31, 2023, some two weeks after the court’s decision.

 

Deposit money banks operating in Nigeria have been directed to comply with the ruling of the Supreme Court of March 3, 2023, in accordance with the established tradition of obedience to court orders and sustenance of the rule of law principle that characterised President Muhammadu Buhari’s government, and by extension, the operations of the Central Bank of Nigeria (CBN), as a regulator.

As a result, the CBN convened with the bankers’ committee and ordered that, until December 31, 2023, both the old N200, N500, and N1000 banknotes and the redesigned banknotes remain legal tender.

Is Tinubu Honouring His Words?

Tinubu clarified that he was in favour of the naira redesign idea “in principle” during his presidential campaign.

The president pledged in his inaugural address on May 29, 2023, to reexamine the CBN’s demonetisation policy.

He claimed that the apex bank had implemented the currency exchange too strictly.

 

 

 

 

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