As December 31st looms closer, a sense of trepidation is mounting across Nigeria over the status of the old ₦200, ₦500, and ₦1,000 notes. Rumors have spread like wildfire that these notes will cease to be legal tender by the year’s end, raising concerns of another wave of cash scarcity and economic strain, similar to the crisis that crippled the country earlier last year. Amidst this, the Central Bank of Nigeria (CBN) has a duty to act swiftly and decisively to quash these rumors before they snowball into a national crisis.

The need for CBN to engage in an aggressive information campaign targeting Nigerians at all levels cannot be overstated. This article calls on CBN to embark on an urgent, nationwide grassroots campaign to clear the air, alleviate panic, and reassure Nigerians that they have nothing to fear regarding the continued acceptance of these notes. The campaign should particularly focus on marketplaces and grassroots communities where misinformation tends to circulate most rapidly and where many Nigerians rely primarily on cash for daily transactions.

For many Nigerians, cash remains the lifeline of daily economic activities, especially within rural and suburban communities where digital banking and payment infrastructures are sparse. Early in 2023, the country experienced the devastating effects of a cash crunch in the bid to phase out old notes and roll out new notes in the name of currency redesign. Reports of people unable to access cash for food, transportation, and medical expenses flooded the media, and the effects were felt across all demographics but hit hardest among low-income earners. This was a grim period marked by nationwide hardship, and no Nigerian would want to experience a similar ordeal again.

The approaching December 31st deadline, cited by rumors to be the cut-off for the old notes, has evoked memories of this recent past, sending shockwaves across the country. The lack of clear and widespread communication from the CBN has allowed these unfounded claims to spread, triggering fears that another round of stringent policies may be on the way. If CBN delays in clarifying the status of these notes, panic could set in, fueling a withdrawal rush, speculative hoarding of the new notes, and possibly, a repeat of the cash crunch that left countless families in severe distress.

At this juncture, it is expedient to opine that the inspiration to express this view came when the House of Representatives urged the CBN to begin gradually withdrawing old naira notes and increasing the circulation of new N200, N500, and N1, 000 notes. They also called for commercial banks to only transact with customers in new notes to phase out the old ones. This motion, proposed by Rep. Victor Ogene, addresses the upcoming December 31, 2024, deadline set by the Supreme Court, after which old notes will no longer be legal tender. Ogene emphasized the need for the CBN to launch public awareness campaigns to prevent a repeat of the cash shortages experienced in 2023. The motion has been referred to the Committee on Banking Regulations for further action.

To effectively dispel rumors, the CBN must ensure its information campaign penetrates deeply into Nigeria’s grassroots communities, where misinformation is both common and influential. The importance of marketplaces as hubs of information and transaction cannot be overstated. These venues are not only where the majority of Nigerians engage in daily commerce, but also where rumors gain traction and spread swiftly. In these spaces, people depend heavily on word-of-mouth and often have limited access to official information channels.

A nationwide campaign targeting these grassroots venues can take the form of market visits by CBN officials, collaborations with local governments, and partnerships with community leaders. Local radio stations, which remain a trusted source of information in many communities, should be leveraged for continuous broadcasts that clarify the currency status. In addition, CBN can utilize social media, traditional media, and even mobile loudspeaker announcements to make sure the information reaches every corner of Nigeria.

To successfully reach Nigerians at every level, CBN officials should organize visits to major markets in each state, engaging traders and buyers directly. This would allow officials to distribute pamphlets and speak with market leaders, who are often influential in spreading information. Traders should be assured that the current notes will remain valid, and they should be urged to inform their customers.

Secondly, community engagement through local Leaders is indispensable in this case. This is as Nigeria’s community leaders hold significant sway, particularly in rural areas.  In fact, CBN should engage local chiefs, village heads, and religious leaders to help spread accurate information about the status of the notes. These leaders could help dispel myths and assure their communities that CBN has not issued any such directive on invalidating the old notes by December 31st.

In a similar vein, radio is one of the most far-reaching media platforms in Nigeria, particularly in rural areas where television and internet access may be limited. Therefore, broadcasting clear messages on local stations in various Nigerian languages will ensure that every Nigerian can access the information, irrespective of their primary language. This approach also gives an air of urgency and legitimacy to the campaign, helping reassure the population.

Without a doubt, Nigeria has a high rate of social media usage, especially among younger demographics. CBN should use its official social media channels to post updates, conduct Q&A sessions, and debunk misinformation about the old notes. Engaging with the public on platforms like Twitter, Facebook, and Instagram can also help clarify misconceptions in real-time.

Also, in many rural areas, mobile loudspeaker announcements are commonly used to communicate information directly to the public. CBN could deploy this approach in major markets, particularly on busy market days, to ensure that people have accurate information while they go about their activities.

Without a doubt, the previous cash crunch had a severe impact on small businesses, traders, and daily wage earners. Many lost income, and some businesses even folded up due to a lack of operational funds. The informal sector, which accounts for a large part of Nigeria’s economy, relies heavily on cash transactions. A sudden withdrawal of high-denomination notes would disrupt the economic stability of countless Nigerians, who rely on these denominations for their livelihoods.

An aggressive information campaign that debunks rumors about the old notes will not only calm the public but will also prevent an unnecessary rush to banks and ATMs, which could lead to liquidity challenges. If people are not fully informed, they may panic, believing they must deposit all old notes before the year’s end. This could lead to long lines at banks and financial institutions, draining both cash reserves and customer patience.

With only weeks left in the year, there is no time for complacency. CBN must take the reins now and ensure every Nigerian is well-informed. Delaying the campaign any further could result in confusion, panic, and a further strain on the country’s economic stability. CBN’s silence will only encourage the spread of misinformation, and by the time action is taken, it may be too late to reverse the effects.

The current administration has made various promises to ease the financial strain on the population, and ensuring a smooth transition through this period is one way to honor these commitments. However, with the currency rumors still unchecked, trust in government institutions could be further eroded. People may begin to question the CBN’s motives, suspecting that it plans to implement sudden and draconian measures.

In recent months, Nigerians have faced economic challenges that are largely beyond their control, and rumors regarding the validity of currency notes only serve to exacerbate an already difficult situation. CBN has the tools, resources, and influence to tackle this issue head-on. All that is needed is a sense of urgency, an understanding of grassroots dynamics, and a commitment to ensuring that Nigerians are equipped with accurate information.

This article calls upon CBN to rise to the occasion, to avoid another national cash crisis by clearing up the misinformation about the December 31st deadline for old ₦200, ₦500, and ₦1,000 notes. A well-coordinated grassroots campaign will not only keep Nigerians informed but will also strengthen their trust in the financial system and in the CBN’s mandate to protect the currency and the economy.

With prompt, widespread communication, Nigerians can enter the New Year with a sense of security, assured that their hard-earned money remains safe and usable. As the countdown to December 31st continues, CBN must act now, for every moment of delay brings Nigeria closer to another potential crisis that we cannot afford.