The Central Bank of Nigeria (CBN) has mandated banks in the country to commence the collection of old N500 and N1,000 notes from the public. The CBN’s directive is part of its efforts to promote the use of coins and lower denomination notes, which are more cost-effective and durable than higher denomination notes.
To facilitate the process of collecting old notes, the CBN has directed banks to start accepting the old N500 and N1,000 notes from customers, with a maximum limit of N500,000 per transaction. The CBN has also reiterated that the old currencies are no longer legal tender and warned that banks that fail to comply with this directive would face sanctions.
The CBN’s decision to collect old notes from circulation comes after it opened a portal on its website, making it mandatory for Nigerians willing to return old notes to fill and generate a code. The CBN governor, Godwin Emefiele, has also recently instructed banks to make the old N200 notes available to Nigerians, following President Muhammadu Buhari’s announcement that the old N200 note would remain legal tender until April 10, 2023.
Despite these efforts, there have been protests in several states in the country, as the new naira notes remain scarce. As a result, the CBN has ordered banks to collect higher denomination notes from the public after meeting with banking leaders.
The CBN’s move to collect old notes is expected to improve the efficiency of transactions in the country, particularly in the informal sector, while also reducing the cost of currency production and management. With the use of coins and lower denomination notes, the CBN aims to achieve a more efficient and cost-effective currency management system in Nigeria.