The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, stated that the February 10, 2023 deadline for the use of old naira notes would remain unchanged, despite growing public concerns over cash shortages across the country. :contentReference[oaicite:0]{index=0}
The announcement came during a period of heightened economic tension, as Nigerians faced difficulties accessing newly redesigned banknotes and meeting earlier deadlines set for the currency swap policy.
Deadline Extension from January 31 to February 10
The February 10 deadline followed an earlier extension from the initial January 31 cutoff date. The CBN approved a 10-day extension to allow more time for citizens to deposit old notes and transition to the new currency. :contentReference[oaicite:1]{index=1}
According to the central bank, the extension aimed to improve participation, especially in rural areas where access to banking services remained limited.
Old Notes to Lose Legal Tender Status
Emefiele emphasized that after the February 10 deadline, old naira notes would cease to be legal tender for everyday transactions. :contentReference[oaicite:2]{index=2}
However, a grace period was introduced, allowing individuals to deposit old notes directly with the CBN for a limited time following the deadline. :contentReference[oaicite:3]{index=3}
Cash Shortage and Public Reaction
The policy rollout triggered widespread reactions, with many Nigerians reporting long queues at banks and ATMs due to limited availability of new notes. The shortage created disruptions in daily economic activities, particularly in cash-dependent sectors.
Observers noted that the rapid implementation of the policy contributed to the challenges, as supply of the new currency struggled to meet demand.
Policy Objectives and Economic Impact
The naira redesign initiative was introduced to reduce cash hoarding, improve control over the money supply, and support broader financial system reforms. :contentReference[oaicite:4]{index=4}
Officials also indicated that the policy would help curb illicit financial activities and encourage the adoption of digital payment systems across the country.
Ongoing Developments
Despite the initial insistence on the February 10 deadline, the situation continued to evolve, with legal and political developments later influencing the final outcome of the policy.
For many Nigerians, the episode highlighted the complexity of large-scale monetary reforms and the importance of balancing policy goals with practical implementation challenges.