Banks Will Still Accept Old Naira Notes After Deadline- Emefiele

The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has announced that banks will continually accept old naira notes even when the extended deadline for swapping with the newly redesigned naira notes expires.

The CBN Chief disclosed this when he appeared at an interactive session with the House of Representatives ad-hoc committee on the currency redesign and naira swap policy in Abuja, on Tuesday, January 31, 2023.

Emefiele noted that this move would save Nigerians from losing their old notes after the February 10 extended deadline. He explained that while the old notes cease to be legal tender at the expiration of the deadline, banks will still receive old notes when brought for deposit by Nigerians. The new development has been described as the CBN yielding to the request of the House of Representatives for a gradual phase-out of the old naira notes.

Why banks will keep accepting old notes

Speaking during the session, Emefiele hinted that the act of the Central Bank of Nigeria mandates the apex bank to continually accept old notes after they expire. Let’s take a look at the act: 

Section 20 (3) of the CBN act reads “Notwithstanding sub-sections (1) and (2) of this section, the bank shall have power, if directed to do so by the president and after giving reasonable notice on that behalf, to call in any of its notes or coins on payment of the face value thereof and any note or coin with respect to which a notice has been given under this sub-section, shall, on the expiration of the notice, cease to be legal tender, but, subject to section 22 of this act, shall be redeemed by the bank upon demand.’’

Referencing the CBN act, Emefiele identified with the demand of the house of Representatives for a gradual phasing of the old naira notes. He however failed to state when banks will stop collecting the old notes.

NEXT:Emefiele Finally Appears Before Reps Over New Naira Notes