Earlier in the year, particularly approaching the 2023 General Elections that took place in February and March, Nigerians had to be at first cash-strapped before a Supreme Court verdict on 3 March ordered the Central Bank of Nigeria (CBN) to ensure that old Naira notes were valid until 31 December.

Although the idea to redesign the Naira in October 2022 was statutory, there were concerns that the move was ill-timed. This was because of the stress it brought to the country and its people while trying to access their money.

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With the end-year deadline now approaching, the CBN under a new leadership has released a statement confirming that the old notes remain valid long into the future. The message to the press shared on Tuesday, 14 November, expects full compliance from all and sundry.

“Without prejudice, the Central Bank of Nigeria wishes to inform the general public of its desire to extend the legal tender status deadline of the old design of N200, N500 and N1,000 denominations, ad infinitum. This is in line with international best practices and to forestall a repeat of earlier experiences.

“Thus, all banknotes issued by the Central Bank of Nigeria (CBN), in accordance with Section 20(5) of the CBN Act 2007, will continue to remain legal tender, ad infinitum, even beyond the initial December 31, 2023, deadline. The Central Bank of Nigeria is working with the relevant authorities to vacate the subsisting court ruling on the same subject.”

Beyond the acceptability of the old design, the bank also seeks to reconnect with an already established policy direction. It is one that encourages cashless transactions as the avenue to escape overdependence on paper payment.

A portion of the press release emphasises this. It therefore urged the public “to embrace alternative modes of payment, e-channels, for day-to-day transactions”.

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Sticking to these will decongest banking halls no doubt, but also enable the banking authority or the government to keep track of illicit financial flows which was part of the motivation that former CBN governor, Godwin Emefiele highlighted in his approach.

But the question remains – even if customers adhere to electronic payments, will they work? Results show that the current infrastructure might be unable to handle pressure from having to process millions of transactions at a go.

In the face of Naira scarcity at the beginning of the year when Nigerians couldn’t find any cash to withdraw for their daily expenses, there were reported incidences of several pending or failed transfers which altogether affected businesses.