In a recent development, the Central Bank of Nigeria (CBN) has declared an indefinite extension of the legal tender status for the old design N200, N500, and N1,000 denominations. This decision implies that these banknotes will continue to be recognized as legal tender within Nigeria for an unspecified period.
The CBN formally communicated this decision through a statement released on Tuesday. The central bank cited alignment with international best practices and the prevention of past challenges as the basis for extending the deadline without a specified end date.
The announcement signifies the CBN’s commitment to ensuring a smooth transition and avoiding disruptions associated with changes in legal tender. By keeping the old design banknotes in circulation, the CBN aims to provide stability in monetary transactions across the country.
Additionally, the CBN revealed its collaboration with relevant authorities to address a subsisting court ruling on the same subject. This collaborative effort suggests a multi-faceted approach to ensure the seamless acceptance and integration of the designated banknotes into the ongoing currency landscape.
As the CBN works towards resolving legal matters and upholding international standards, the indefinite extension of the legal tender status demonstrates the central bank’s dedication to prudent monetary practices and financial stability in Nigeria.