Naira redesign: Banks begin paying old N500, N1,000 notes

Following the Supreme Court decision last week that extended the validity of the Central Bank of Nigeria’s currency redesign policy to December 31, some banks have begun paying out old N500 and N1,000 notes.

Guaranty Trust Bank, Polaris Bank, and other banks confirmed on Monday that they were still dispensing the old notes in Abuja and Kano.

According to a banker who spoke with Daily Trust, the directive to begin paying the old notes in their vault came from management.

She added, “The problem is that taking the old notes from customers will require the CBN form as we don’t have any directive in that regard.”

Meanwhile, CBN had not officially issued a bank-wide circular instructing the Deposit money bank to comply with the apex court judgment neither as the presidency reacted to the ruling.

Recall that a seven-member panel of justices presided over by Justice Inyang Okoro, on Friday, held that the directive by President Muhammadu Buhari to the CBN for the redesigning and withdrawal of old notes of N200, N500 and N1,000, without consultation with the states, the Federal Executive Council and the National Council of State and other stakeholders, was unconstitutional.

The apex court observed that no reasonable notice was given before the implementation of the policy as provided under the CBN Act.