Old 200 Naira notes to remain legal tender till April 10- President Buhari

The current 200-naira notes will continue to be accepted as legal tender for the next 60 days, beginning on February 10 and continuing through April 10.

On Thursday morning, President Buhari made this announcement in a state-wide broadcast to the entire nation.

In the speech, President Buhari stated, “I have given approval to the CBN (Central Bank of Nigeria) that the old N200 bank notes be released back into circulation.” He added, “it should also be allowed to circulate as legal tender with the new N200, N500, and N1000 banknotes for 60 days from February 10, 2023 to April 10, 2023 when the old N200 notes cease to be legal tender.”

This decision was made “to further ease the supply pressures, particularly to our citizens,” President Buhari stated.

The president went on to say, “While I seek your understanding and patience during this temporary phase of implementation, I feel obliged to avail you of a few critical points underpinning the policy decision.” He then went on to list the reasons:

“The necessity of restoring the CBN’s legal authority to maintain firm control over money in circulation. Currency-in-Circulation was only N1.4 trillion in 2015, when this administration began its first term.

Additionally, President Buhari mentioned that “the proportion of currency outside banks grew from 78% in 2015 to 85% in 2022,” and “as of October 2022, currency in circulation had risen to N3.23 trillion; which only contained N500 billion within the Banking System and left N2.7 trillion permanently outside of it; thereby hindering effective inflation management and distorting financial policy.”

“Compelling for government to deepen its continuing support for security agencies to successfully combat banditry and ransom-taking in Nigeria,” the president asserts.

According to President Buhari, “N2.1 trillion out of the banknotes previously held outside the banking system, had been successfully retrieved” since the implementation of the naira redesign policy last year.

This accounts for about 80% of these funds. Therefore, it is anticipated that in the short, medium, and long terms: an improvement in our macroeconomic parameters; a decrease in the total amount of money in circulation that slows the rate at which money moves through the economy, which should ease pressures on domestic prices; and) a slower rate of inflation due to the associated decrease in the money supply, which will slow the rate of inflation.

Additionally, the president stated that the naira redesign policy will support exchange rate stability and “collapse of illegal economic activities, which would help to stem corruption and acquisition of money through illegal ways.” ensure that easy loans are available and that interest rates are reduced; and make sure that our financial actions are more visible and transparent, which will help us effectively enforce our laws against money laundering.

On Wednesday, the High Court dismissed till the following week Wednesday, the 22nd of February, 2023, to hear the movements for and against, in the suit brought by three states testing the February 10 cutoff time by the CBN for the old N200, N500 and N1000 notes to stay legitimate delicate.

Yesterday, protests broke out in some states—Edo, Delta, and Oyo—as frustrations began to creep due to the inability of citizens to obtain the new naira notes and the widespread rejection of the old notes. On Wednesday of last week, the supreme court issued an injunction requesting that all previous notes remain legal tender pending the outcome of the case.

Numerous irate youths blocked numerous highways as a result of these protests, which ensured the destruction of several banks.

The president, on the other hand, maintains that he is “not unaware of the obstacles placed on the path of innocent Nigerians by unscrupulous officials in the banking industry, entrusted with the process of implementation of the new monetary policy.”

He states, “I am deeply hurt and truly sympathize with you all over these unintended outcomes.”

Let me reassure Nigerians that our administration will continue to evaluate the implementation to ensure that Nigerians are not burdened beyond their capacity.

“In this regard, the CBN shall ensure that new notes are made more readily available to our citizens and made accessible to them through the banks. President Buhari pleaded, “I wish to once more appeal for your understanding until we overcome this difficult temporary phase within the shortest time possible.”

President Buhari urged citizens to “vote for their candidates of choice without fear, because security shall be provided and your vote shall be counted” in an address prior to the upcoming presidential elections.

In his broadcast, President Buhari appeared to agree that the new naira redesign is both an economic and political policy. “On the 25th of February, 2023 the nation would be electing a new President and members of the National Assembly,” he stated.

I am aware that this new monetary policy has significantly reduced the influence of money in politics.

He continued, “This is a bold legacy step by this administration, towards laying a strong foundation for free and fair elections,” and “this is a positive departure from the past.”