Nigerians continue to trade with old naira notes despite expiration of CBN’s February 10 deadline

Nigerians continue to carry out transactions with the old naira notes despite the Central Bank of Nigeria (CBN) deadline on the use of the old currency which expired on February 10.

Many Nigerians believe that the Supreme Court’s ruling on a suit filed by some All Progressives Congress (APC) on the currency redesign will determine the fate of the old naira notes.

The apex court will rule on the suit filed by the Kaduna, Kogi, and Zamfara State governments challenging the redesign of the naira notes and the deadline for the currency swap on February 15.

The court had last week temporarily restrained the Federal Government and the Central Bank of Nigeria (CBN) from enforcing the February 10 deadline for the withdrawal of old naira notes from circulation pending the determination of the suit by the state governments.

The federal government in its reaction promised to obey the court order while the CBN on Friday removed the countdown to February 10 from its website.

Ripples Nigeria spoke with some traders at markets, churches, and motor parks across Lagos and discovered they are still collecting the old notes.

Kunle Alabi, a yam seller in Ikotun-Egbe, said he still collects the old notes because the deadline is February 17 and not 10 as many people had anticipated.

READ ALSO: Naira redesign to promote financial inclusion, tackle banditry — CBN

“CBN added an extra one week to the deadline after announcing February 10 but many people are still not aware and that is why they were thinking the old notes are no longer legal tender,” Hassan said.

Another trader said he has not gone to the bank in the last few days, saying he sells his old notes to Point of Sale (PoS) operators and buys from them when necessary.

“I prefer to collect the old notes instead of transfer because of the fear of failed transactions,” he stated.

The CBN is yet to comment on the legal status of the old naira notes for transactions.

However, the CBN’s Director of Corporate Communication, Osita Nwanisobi, said in a circular that at the end of the earlier deadline of January 31 Nigerians line with the provision of Section 20(3) of the CBN Act would have the opportunity to redeem the value of the naira only at the apex bank subject to certain conditions.

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