Economy
FG, CBN’s Silence Create Confusion as Traders, Supermarkets, Others Reject Old Naira Notes
By Dipo Olowookere
The inability of the federal government and the Central Bank of Nigeria (CBN) to give a direction on the old Naira notes, which the apex bank earlier said would cease to be legal tender in the country from February 10, 2023, is creating confusion.
Business Post gathered that in Lagos, some traders, supermarkets, eateries and others now reject old Naira notes; N200, N500, and N1,000. They insist on collecting the redesigned currencies or being paid through the Point of Sale (POS) machine.
At one of the prominent eateries on the Egbeda-Idimu Road in the Egbeda area of Lagos, customers expressed bitterness over the refusal of the management of the facility to accept payment with the old notes on Friday night.
“I wanted to pay for the food I bought, but I was told they would not accept the old currency notes except the new ones. I had to use my debit card to pay through their POS machine,” one of the customers, Mr Aigbe James, told this reporter.
Recall that on Wednesday, the Supreme Court granted an interim injunction sought by the Governors of Kaduna, Kogi, and Zamfara States, to stop the implementation of the deadline of the currency swap policy of the central bank.
The Governors claimed that the policy was making residents of their states go through untold hardship as it was already causing protests in some parts of the country.
The apex court ruled that the status quo should be maintained until the matter is heard next Wednesday. This meant that the old and new notes should be allowed to co-exist until a final judgement is given.
On Friday, an emergency Council of State meeting was conveyed by President Muhammadu Buhari to discuss the policy and others, including the general elections starting in two weeks’ time.
Briefing newsmen after the meeting, the Attorney-General of the Federation and Minister of Justice, Mr Abubakar Malami, said the council threw its weight behind the policy but advised the CBN to print more banknotes or recirculate the old Naira notes to ease the cash crunch in the country. He also said the government was advised to obey the Supreme Court order, meaning the deadline will no longer be applicable.
But some banks sent messages to their customers yesterday, informing them that the deadline remained February 10.
“The old designs of N200, N500 and N1000 will no longer be accepted as legal tender after today, February 10, 2023. Deposit your old notes now at any of our branches,” one of the banks stated.
At the Ikeja area of Lagos State on Saturday, some traders at the popular Computer Village refused to accept the old notes.
It was a similar story in Maryland as a few supermarkets visited by this reporter rejected the old Naira notes, insisting on the new currency notes or card payments.
Those who spoke with this newspaper stressed that their refusal was because the government was yet to speak on the deadline and do not want to lose their money.
When reminded that the CBN had earlier said after the deadline, Nigerians could still deposit their old notes till February 17, the respondents said they just want to be on the safer side.
Meanwhile, some POS operators still accept the old banknotes, especially as they battle with getting the new notes.
“I still accept the old notes because I can still take them to the bank before February 17.
“Getting the new notes is very difficult, and we purchase the old notes at an exorbitant price. I pay between 10,000 and N17,000 to get N100,000 in old notes in this area; that is why we charge our customers almost N2,000 for N10,000.
“Some people think we are taking advantage of the situation to hike our charges, but it is not our fault. I am only buying [the old notes] because I don’t want to go out of business,” one of the operators in the Iyana Ipaja area of Lagos State, Ms Toyin Sokoya, informed Business Post.
By Adedapo Adesanya
The Naira closed stronger against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) by N9.35 or 0.58 per cent on Monday, May 12 at at N1,600.29/$1 compared with the N1,609.64/$1 it traded last Friday.
Similarly, the Nigerian Naira improved its value against the Pound Sterling in the official market during the trading session by N31.46 to settle at N2,114.02/£1 versus the preceding trading day’s rate of N2,145.48/£1 and appreciated against the Euro by N37.61 to sell for N1,780.81/€1, in contrast to the previous session’s value of N1,818.42/€1.
The improvement in the value of the local currency yesterday happened after a temporary relief from the US-China tensions and further commitments by the Central Bank of Nigeria (CBN) to intervene in the market.
However, the Nigerian currency depreciated against the Dollar in the black market on Monday by N5 to close at N1,630/$1 compared with the preceding session’s rate of N1,625/$1.
As for the cryptocurrency market, it was red during the trading session after the US and China agreed to suspend most tariffs on each other for 90 days.
The 90-day tariff pause gave market participants a “clear, short-term positive signal” that’s supportive for risk assets including crypto, even though headwinds could rise again without a broader deal in place once the pause expires.
According to market analysts, this is a temporary arrangement and volatility will likely return as the 90-day window approaches its end.
Dogecoin (DOGE) slumped by 6.6 per cent to sell at $0.2232, Cardano (ADA) fell by 3.0 per cent to $0.7890, Solana (SOL) went down by 2.1 per cent to $170.80, Ethereum (ETH) declined by 2.0 per cent to $2,451.16, Bitcoin (BTC) depreciated by 1.6 per cent to $102,394.53, and Binance Coin (BNB) shrank by 1.1 per cent to $648.78.
But, Ripple (XRP) gained 4.5 per cent to quote at $2.49, and Litecoin (LTC) increased its value by 1.7 per cent to $102.78, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Dipo Olowookere
The Minister of State for Finance, Ms Doris Uzoka-Anite, has advised global investors to quickly key into the federal government’s economic reforms so as not to bite their fingers later because of a missed opportunity.
Speaking during the Milken Institute Global Conference 2025 in the United States, she said the administration of President Bola Tinubu was implementing some initiatives designed to support the startup ecosystem.
She described Nigeria’s startup ecosystem as dynamic, with opportunities for investment in fintech, agritech, edtech, logistics, and health, assuring that the government is committed to supporting players in the sector through regulatory reforms, catalytic funding, and talent development.
According to her, the government is carrying out some necessary reforms to achieve its economic objectives, including streamlining the investment climate, improving infrastructure, and enhancing trade efficiency.
The Minister said the main aim of the administration is to position Nigeria as a hub for sustainable growth and innovation in Africa, urging investors to explore opportunities in the country.
Ms Uzoka-Anite emphasised that Nigeria is deepening intra-African trade and investment through the African Continental Free Trade Area (AfCFTA), unlocking value across the continent.
The AfCFTA’s phased implementation, she said, will reduce tariffs on 90 per cent of goods traded within Africa, promoting intra-African trade and regional value chain development.
This strategic move positions Nigeria for high-potential investment opportunities in key sectors such as agriculture, energy, digital economy, manufacturing, infrastructure, mining, and healthcare.
“We are not simply seeking aid or short-term capital, but strategic collaborations that recognize the continent’s potential as the next frontier for sustainable growth and innovation,” she said.
By Dipo Olowookere
The federal government is looking to borrow about N300 billion from investors through the issuance of a fresh Sukuk, with an annual rental income of 19.75 per cent.
The Islamic debt instrument will have a tenor of seven years and will mature in May 2032, according to the Debt Management Office (DMO), which is in charge of the sale.
Proceeds from the exercise will be used mainly to finance road projects across the country to meet the ethical and faith considerations of some segments of the investing public.
The interest will be paid every six months and is tax-free, providing a good route for wealth accumulation and investment compounding.
Speaking on Monday during an investor meeting in Abuja, the Director General of the DMO, Ms Patience Oniha, emphasised that the recent credit rating upgrade of Nigeria by Fitch Ratings reflects the progress in economic and debt management reforms.
“Being upgraded by Fitch means we are doing something right. Growth and development is a journey—it doesn’t happen all at once.
“But with the right fiscal and monetary policies in place, we are making tangible progress,” she told investors present at the gathering, stressing that the upgrade directly affects investment decisions, business performance, and market pricing.
She used the occasion to announce the repayment of the N100 billion Sukuk sold in 2017 by the federal government.
“All those who subscribed to the Sukuk in 2017 have now received full repayment of their investments, in addition to the interest they were paid upfront,” Ms Oniha declared.
Business Post reports that the 2027 Sukuk was used to fund road projects across the six geo-political zones of Nigeria, including the Lagos/Abeokuta Expressway, which has yet to be completed.
For the new N300 billion Sukuk, the minimum investment amount is N10,000. It is fully backed by the full faith of the Nigerian government and can be purchased through a stockbroker.
Subscription for the debt instrument commenced on Monday, May 12, 2025, and will end on Tuesday, May 20, 2025.
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