News

Reps Slams CBN Over Confusion On Old, New Naira Notes

Published

4 weeks ago

Oct 25, 2024.

Labour Party Caucus Leader in the House of Representatives, Afam Ogene, has strongly criticized the Central Bank of Nigeria (CBN) for its unclear stance on the concurrent use of old and new Naira notes, describing the situation as confusing for the public.

Ogene’s statement, made in Abuja on Friday, followed a recent clarification from the CBN after the Supreme Court modified an earlier ruling regarding the legal status of old currency notes.

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EKO HOT BLOG reports that according to Ogene, the CBN’s latest update failed to specify when the old N200, N500, and N1000 notes would stop being recognized as legal tender.

This lack of clarity came just after the House of Representatives passed a motion on October 24, spearheaded by Ogene, urging the CBN to address the overlap between the old and new currency notes.

The motion, titled “Need for Central Bank of Nigeria to Sensitize Nigerians about the Non-Legal Status of Old Naira Notes from January 1, 2025,” was aimed at resolving public confusion on the validity of both sets of notes.

Ogene acknowledged an “unintended factual error” in the motion, attributing it to the CBN’s lack of transparent policy guidance.

He clarified that the House’s resolution was intended to bring clarity to the situation and assigned the Committee on Banking Regulations to liaise with the CBN, requiring a report within 21 days.

In response, however, the CBN rebuffed the House’s resolution, labeling it as an attempt to destabilize the payment system.

CBN New Naira Notes

The CBN encouraged the public to disregard the House’s position, referencing the Supreme Court’s latest ruling as the basis for their stance.

Ogene questioned the logic of running the economy with two distinct sets of currency notes, stating, “Which country in the world runs its economy with two sets of unidentical currency notes?” He reminded the public that the CBN’s initial objective in introducing new notes was presumably to phase out the older versions.

The lawmaker also raised concerns over the poor quality of currency notes currently issued by commercial banks, noting that many customers lose between N5,000 and N10,000 out of every N100,000 withdrawn due to receiving damaged notes.

In conclusion, Ogene urged the CBN to fulfill its duty to the public, rather than relying on “legal ambiguities” to evade responsibility.