The President, Major General Muhammadu Buhari (retd.), has approved the continued use of the old N200 note as legal tender until April 10. He announced this on Thursday morning during an address to Nigerians.
“My dear compatriots, I find it necessary to speak to you today about the state of the nation and to account for our administration’s efforts to sustain and strengthen the economy, combat corruption, and preserve the gains we have made in the fight against terrorism and insecurity. These challenges have been affected by several internal and external factors.
As your democratically elected President, I sympathise with the difficulties you are experiencing as we implement new monetary policies designed to boost the economy and close loopholes that facilitate money laundering. Rest assured, strengthening the economy, enhancing security, and blocking illicit financial flows remain top priorities for my administration. I remain committed to my oath to protect and advance the interests of Nigerians and the nation at all times.
In the last quarter of 2022, I authorised the Central Bank of Nigeria (CBN) to redesign the N200, N500 and N1 000 banknotes. To ensure a smooth transition, I approved that the redesigned notes would circulate alongside the old notes until 31 January 2023, after which the old notes would cease to be legal tender. In recognition of the systemic and human difficulties encountered during implementation, and in response to citizens’ appeals, I extended the deadline by ten days to 10 February 2023. All these actions are undertaken within the Constitution, the CBN Act 2007 and in line with global best practices.
I ask for your understanding and patience during this transitional phase, and I wish to highlight several critical points underpinning the policy decision:
a. Restoring the CBN’s statutory ability to control money in circulation. When this administration began its first term in 2015, currency in circulation was only N1.4 trillion.
b. The proportion of currency outside banks rose from 78 % in 2015 to 85 % in 2022. By October 2022, currency in circulation had increased to N3.23 trillion, of which only N500 billion was within the banking system and N2.7 trillion remained permanently outside, distorting financial policy and inflation management.
c. The large volume of banknotes outside the banking system is effectively unavailable for economic activities, hindering potential growth.
d. Economic growth projections require expanding financial inclusion and reducing the unbanked population.
e. Improving the prevailing security situation also compels the government to deepen support for security agencies in combating banditry and ransom‑taking.
Despite initial setbacks, the evaluation and feedback mechanisms have shown gains from the policy initiative. I have been reliably informed that, since the programme began, about N2.1 trillion of the banknotes previously held outside the banking system have been successfully retrieved—approximately 80 % of those funds. In the short, medium and long term, this is expected to:
a. Strengthen macro‑economic parameters;
b. Reduce broad money supply, slowing the velocity of money and easing pressure on domestic prices;
c. Lower inflation as money supply declines;
d. Collapse illegal economic activities, thereby curbing corruption and illicit wealth;
e. Stabilise the exchange rate;
f. Increase the availability of easy loans and lower interest rates;
g. Enhance visibility and transparency of financial actions, improving enforcement of anti‑money‑laundering legislation.
I am aware of the obstacles placed before innocent Nigerians by unscrupulous officials in the banking industry tasked with implementing the new monetary policy. I deeply regret these unintended outcomes and sincerely sympathise with those affected. To address the issue, I have directed the CBN to deploy all legitimate resources and legal means to ensure citizens are adequately educated about the policy, have easy access to cash withdrawals, and can make deposits. I have also instructed the CBN to intensify collaboration with anti‑corruption agencies so that any institution or individual found to have impeded or sabotised implementation will face the full weight of the law.
During the extended deadline for the currency swap, I listened to invaluable advice from well‑meaning citizens and institutions nationwide. I consulted widely with state governors and the Council of State, and I have noted that the matter is before the courts, where some pronouncements have already been made.
To further ease supply pressures, I have approved that the old N200 notes be released back into circulation and allowed to remain legal tender alongside the new N200, N500 and N1 000 notes for 60 days, from 10 February 2023 to 10 April 2023, when the old N200 notes will cease to be legal tender. In accordance with Section 20(3) of the CBN Act 2007, all existing old N500 and N1 000 notes remain redeemable at the CBN and designated points.
Considering the health of our economy and the legacy we must leave for the next administration and future generations, I urge every citizen to make deposits using the platforms and windows provided by the CBN. Rest assured, our administration will continue to assess implementation to ensure Nigerians are not unnecessarily burdened. The CBN will work to make the new notes more available and accessible through banks.
I appeal once more for your understanding as we overcome this difficult transitional phase as quickly as possible. On 25 February 2023 the nation will elect a new President and National Assembly members. This monetary policy has also helped minimise the influence of money in politics—a positive departure from the past and a bold step toward a strong foundation for free and fair elections. I urge every citizen to vote for their chosen candidates without fear; security will be provided and every vote will count. Please eschew violence and avoid actions that could disrupt the electoral process. I wish us all a successful general election.
Thank you for listening. God bless the Federal Republic of Nigeria.
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