The recent effort by several Deposit Money Banks to re‑circulate old N500 and N1,000 notes encountered significant resistance on Tuesday. Motorists, fuel stations, retailers, traders and other bank customers all rejected the old currency. This backlash occurred just 48 hours after banks such as Guaranty Trust Bank Plc, Zenith Bank Plc and Sterling Bank began distributing the controversial notes at branches in major Nigerian cities. The banks’ decision followed last week’s Supreme Court order, which approved the use of old N1,000, N500 and N200 notes as legal tender for ten months, allowing them to circulate alongside new notes until 31 December 2023. The Court ruled that the Federal Government’s naira redesign policy violated the 1999 Constitution.
Despite the Court’s ruling, key customer groups have started refusing the re‑circulated N500 and N1,000 notes, arguing that the Central Bank of Nigeria (CBN) has not yet authorised their use as legal tender, except for the old N200 note.
**Oil marketers**
Oil marketers in Abuja, Nasarawa and Niger states declined to collect the old N500 and N1,000 notes, insisting that Deposit Money Banks have not instructed them to accept the bills. Some filling stations, including those run by independent marketers and the Nigerian National Petroleum Company Limited (NNPC), also refused the old notes. At the NNPC retail outlet in Nyanya, attendants said they had not received any directive to accept the notes. Similarly, staff at Khalif filling station in Kubwa, Abuja, refused the old bills and asked customers to pay via point‑of‑sale (POS) machines or bank transfers.
**Traders and motorists in Lagos and Ogun**
Petrol stations and commercial buses in Lagos and Ogun states also rejected the old notes, accepting only the old N200, new notes, POS payments or transfers. Conflicts erupted between station attendants and motorists, leaving customers stranded when their old notes were refused. Bus drivers similarly declined the notes, citing the lack of acceptance at fuel stations.
Traders along the Alagbole‑Akute axis in Ogun State echoed this reluctance. One trader, Bukola Vivian, explained that Nigerians tend to follow CBN directives rather than court rulings, and since the CBN has not approved the old notes, she cannot accept them as change. A sales manager at JustRite Superstores confirmed that the retailer is not accepting the old notes, noting that few customers have presented them and the bank’s stance remains unclear.
Market women in Magboro, Ogun State, also refused the old notes, awaiting a presidential directive before they can collect them. “The last time the Supreme Court said we should collect them, President Buhari’s statement overrode it,” said one vendor, Iya Sola.
In the Federal Capital Territory, an Abuja taxi driver and a corn seller both declined the old notes, citing uncertainty about their acceptance by others and the lack of a CBN directive.
**SME perspective**
Dr Adams Adebayo, chairman of the Nigerian Association of Small and Medium‑scale Enterprises, lamented the situation, calling it “disheartening” that traders and the public continue to reject the old notes despite the Supreme Court’s pronouncement. He criticised the banking system for contributing to an economic collapse through inaction.
**Bank actions**
Banks continued to dispense the old N500 and N1,000 notes at their counters. Guaranty Trust Bank on Zaitech Road in Oregun handed out old N500 notes, while a Zenith Bank branch inside the RCCG Camp in Ogun State distributed up to N5,000 in old notes. Dr Uju Ogubunka, president of the Bank Customers Association of Nigeria, argued that there is no reason for traders and transporters to refuse the notes, emphasizing that the Supreme Court’s decision makes them legal tender. He urged anyone unable to use the notes to return them to banks, assuring that they would not incur a loss.
However, several banks had not yet begun disbursing the old notes, and cash shortages persisted nationwide. Branches in Lagos, Abuja, Ogun and other regions experienced long queues, with some banks closed due to insufficient cash. At Fidelity Bank’s Old Ojo Road branch, a customer received number 70 after arriving at 6:49 am, highlighting the congestion.
**POS operators and regulatory concerns**
Victor Olojo, national president of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), condemned the CBN’s silence on the issue, calling for a clear directive to financial institutions to accept and issue the old notes. He stressed that the CBN must respect the Supreme Court ruling.
Meanwhile, customers reported excessive fees from POS operators, with charges of up to N1,500 on a N5,000 new note. Kunle Solola and Kemi Adebola called for action by the CBN and the Economic and Financial Crimes Commission to stop such extortion, warning that the practice is unsustainable for Nigerians.
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