President Buhari Approves the Use of Old 200 Naira Notes

In his address to Nigerians on Thursday, the President directed the Central Bank of Nigeria to release the old ₦200 notes for continuous use as legal tender until April 10. The president said the old ₦200, will function as legal tender alongside the new ₦200, ₦500, and ₦1000 notes.

The President said “I have found it necessary to address you today, on the state of the nation and to render account on the efforts of our administration to sustain and strengthen our economy, enhance the fight against corruption and sustain our gains in the fight against terrorism and insecurity which has, undoubtedly, been impacted by several internal and external factors.”

President Buhari also expressed his sympathy “over the difficulties being experienced as we continue the implementation of new monetary policies, aimed at boosting our economy and tightening of the loopholes associated with money laundering.”

He reassured Nigerians that “strengthening our economy, enhancing security and blockage of leakages associated with illicit financial flows remain top priority”, for his administration. He urges Nigerians to be “understanding and patient during this transient phase of implementation.”

“In the last quarter of 2022, I authorized the Central Bank of Nigeria (CBN) to redesign the ₦200, ₦500, and ₦1,000 Nigerian banknotes”, he said. “For a smooth transition, I similarly approved that the redesigned banknotes should circulate concurrently with the old bank notes, till 31 January 2023, before the old notes, cease to be legal tender…”

President Buhari pointed out a few critical points supporting the policy decision, which he stated to be “the need to restore the statutory ability of the CBN to keep a firm control over money in circulation. In 2015 when this administration commenced its first term, Currency-in-circulation was only ₦1.4 trillion.”

“The proportion of currency outside banks grew from 78% in 2015 to 85% in 2022. As of October 2022, therefore, currency in circulation had risen to ₦3.23 trillion, out of which only ₦500 billion was within the Banking System while ₦2.7 trillion remained permanently outside the system; thereby distorting the financial policy and efficient management of inflation.”

“…To further ease the supply pressures particularly to our citizens, I have given approval to the CBN that the old ₦200 bank notes be released back into circulation and that it should also be allowed to circulate as legal tender with the new ₦200, ₦500, and ₦1,000 banknotes for 60 days from February 10, 2023 to April 10, 2023 when the old ₦200 notes ceases to be legal tender.”

“In line with Section 20 (3) of the CBN Act 2007, all existing old ₦500 and ₦1, 000 notes remain redeemable at the CBN and designated points.”

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