The House of Representatives has called on the Central Bank of Nigeria to begin the gradual withdrawal of old naira notes and to ensure the circulation of new denominations of N200, N500, and N1,000.
This resolution was made during Thursday’s plenary session following a motion of urgent national importance moved by Mr. Victor Ogene, representing Ogbaru Federal Constituency in Anambra State.
The CBN initially introduced the redesigned N200, N500, and N1,000 notes in October 2022, with circulation starting in December.
However, the rollout was met with public backlash, as many Nigerians struggled to access the new notes amidst widespread shortages.
A series of legal challenges ensued, leading to the Supreme Court extending the deadline for the old notes’ use to December 31, 2024, after which they will no longer be legal tender.
During his presentation, Ogene raised concerns about the mismanagement of the naira redesign process and criticized the CBN for failing to effectively circulate the new notes. He noted that Nigerians could face another chaotic situation similar to what occurred in February 2023, when the old notes were hastily withdrawn.
Ogene stressed the need for the CBN to adequately prepare for the transition, emphasizing that public awareness campaigns should be launched at least three months before the deadline. These campaigns should include jingles, media announcements, and printed materials to inform Nigerians about the impending change.
Ogene also expressed concern that the CBN is still distributing old notes alongside the new ones, which he said complicates the transition process.
In response, the House passed several resolutions. They urged the CBN to increase the distribution of new naira notes while gradually phasing out the old ones before the December 31, 2024 deadline.
Additionally, they directed commercial banks to stop handling cash transactions involving old notes and focus on mopping up these notes. The House also called for awareness programs to prepare the public for the change.
The motion was referred to the Committee on Banking Regulations for further legislative action.
