Naira Notes: NBA, Finance Minister Warning CBN on Deadline, Hardship

Naira Notes: NBA, Finance Minister Warning CBN on Deadline, Hardship

In response to the demonetisation coverage of the Central Financial institution of Nigeria (CBN) which directs that the previous naira notes (N100, N200, N500 and N1000) will stop to be authorized tender in Nigeria from February, 2023, the Nigerian Bar Affiliation (NBA) has insisted that the legislation permits Nigerians to redeem their previous naira notes on the CBN even after the January 31, 2023 deadline set by the apex financial institution.

The NBA has additionally appealed for the pressing evaluate of the demonetisation coverage of the CBN. The NBA’s attraction is contained in a letter signed by the NBA President, Mr. Yakubu Chonoko Maikyau, OON, SAN and addressed to the CBN Governor, Mr. Godwin Emefiele.

Whereas acknowledging that the coverage is laudable because it has the potential to stem corruption, votes shopping for and different felony actions, the NBA President famous that “the required logistical, infrastructural and manpower assist, required for the profitable implementation of the coverage are in brief provide and must be tremendously improved upon if they’re to be leveraged for full implementation of the coverage with minimal loss or financial hardship.”

Within the letter, the NBA President expressed the telling issues that there isn’t any data within the public area as to what would occur to the previous foreign money in possession of Nigerians, by or after the 31 January 2023, even because the legislation is obvious on this concern.

Quoting the provisions of Part 20 (3) of the CBN Act which supplies that “however Sub-sections (1) and (2) of this part, the Financial institution shall have energy, if directed to take action by the President and after giving affordable discover in that behalf, to name in any of its notes or cash on cost of the face worth thereof and any notice or coin with respect to which a discover has been given below this Sub-section, shall, on the expiration of the discover, stop to be authorized tender, however, topic to part 22 of this Act, shall be redeemed by the Financial institution upon demand”

Mr. Maikyau famous that “any one who shall be in possession of the previous notes which have ceased to be authorized tender by 31 January 2023 is at liberty to strategy the CBN and demand for the redemption of the notes and the CBN is below statutory obligation to “redeem” the notes.”

In view of the dearth of knowledge on this regard, the NBA President added that “our suggestion, on this concern is that along with educating Nigerians on demonetisation itself, a marketing campaign on what occurs to previous financial institution notes after 31 January must be launched in order to adequately inform the general public on what to do and forestall or reverse the rising panic or agitations brought on by issues concerning the incapacity of Nigerians to swap their previous notes for the brand new notes by 31 January.”

In a associated growth, the NBA President on Friday paid a courtesy name on the Minister of Finance, Funds and Nationwide Planning, Dr. Zainab Shamsuna Ahmed in Abuja and relayed the issues of the Nigerian folks over the demonetisation coverage of the CBN, notably in view of the shortage of the brand new notes and the issue Nigerians are encountering in swapping the previous notes .

The NBA President knowledgeable the Minister that he directed the chairmen of the 128 branches of the NBA to survey and assess the affect of the coverage on Nigerians of their respective jurisdictions and the combination of report to this point indicated that banking services are being overstretched and residents are unsure concerning the coverage.

Mr. Maikyau famous that the more severe hit are the under-privileged residents whose life asset will not be as much as N10,000 and who do not need entry to the brand new notes and should subsequently be denied of their hard-earned cash within the previous naira notes.


The NBA President recalled that the Authorities must keep away from the repeat of the tough experiences of Nigerians in 1984 when an analogous demonietisation coverage reportedly claimed the lifetime of a dealer who dedicated suicide as a result of he was stranded with about NGN 200,000 of the previous notes.

Whereas addressing the Minister, Mr. Maikyau careworn that “President Buhari could have been wrongly suggested on the coverage as a result of by the provisions of the CBN Act the facility of the CBN to name in any of its notes or cash in any other case described as demonetisation, can solely turn into operational upon the directive of the President after giving affordable discover for the recall.


From the clear wording of the part, these two situations should coexist earlier than the facility to name any of the notes or cash by the CBN can crystallise. The questions which have trailed this coverage from our consultations embrace; “was there a directive of the President? And the place there was one, may or not it’s mentioned that the discover, given the prevailing circumstances was affordable ? The questions search to interrogate the method resulting in the coverage and justify the necessity for extension of the timelines for its implementation.”

Talking of the situation of affordable time as offered for within the legislation, the NBA President added that whereas the CBN for the primary time introduced the coverage in October 2022, residents have solely been given a mere 45 days to swap naira notes, because the new naira notes solely grew to become obtainable from December 15, 2022. Mr. Maikyau famous that when an analogous coverage was launched in a sophisticated economic system as United Kingdom’s, the federal government had introduced a date for demonetisation 18 months prematurely.

In her response, the Minister of Finance recommended the NBA for being the primary skilled physique to precise concern over the problem, notably because it pertains to the provisions of Part 20 (3) of the CBN Act which permits Nigerians to strategy the CBN to redeem their previous foreign money notes even after the deadline. She added that the federal government is conscious of the issues over the coverage and that the ministry would attain out to the CBN in a bid to contemplate revisiting the January 31 terminal date of the demonetisation coverage.