Central Bank of Nigeria Reiterates Legal Tender Status of Old Naira Notes

By Mohammed Bello Doka

In a recent statement released by the Central Bank of Nigeria (CBN), it has emphasized that all denominations of banknotes issued by the CBN remain legal tender and should not be rejected by anyone, as outlined in Section 20(5) of the CBN Act, 2007.

The CBN also reassured the public that there are ample banknotes available across the nation to support regular economic activities. It urged individuals to accept all CBN-issued banknotes currently in circulation and cautioned against panic withdrawals.

To ensure the continuous circulation of banknotes, the CBN has directed its branches nationwide to provide sufficient quantities of old and redesigned banknotes to deposit money banks (DMBs).

This announcement was prompted by concerns among members of the public regarding the legality of old Naira banknotes. To address these anxieties, the CBN clarified that every banknote issued by the CBN remains legal tender and should not be refused.

Dr. Isa AbdulMumin, the Director of Corporate Communications at the CBN, stated, "Our attention has been drawn to reports of cash scarcity in some major cities, despite the assurance of sufficient cash stocks in all locations across the country. We wish to restate that all denominations of banknotes issued by the Central Bank of Nigeria remain legal tender."

Dr. AbdulMumin further emphasized the importance of embracing alternative methods of payment as a means to reduce reliance on physical cash and alleviate pressure on its use.

With this clarification, the CBN aims to alleviate concerns and ensure that there is a smooth flow of economic transactions across the country.

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