The Central Bank of Nigeria has reaffirmed that both old and redesigned banknotes remain legal tender in the country.
The CBN issued this statement in response to reports of cash shortages in major cities, despite previous assurances about the availability of sufficient cash nationwide.
The CBN’s directive, outlined in a statement signed by its Director of Corporate Communications, Isa AbdulMumin, on Wednesday, emphasizes that all banknotes issued by the CBN are legal tender and should be accepted by everyone, as stipulated in Section 20(5) of the CBN Act, 2007.
The statement reads in part, “For the avoidance of doubt, while reiterating that there are sufficient banknotes across the country for all normal economic activity, we wish to state unambiguously that every banknote issued by the Central Bank of Nigeria remains legal tender and should not be rejected by anyone.”
The CBN has instructed its branches nationwide to continue issuing various denominations of both old and redesigned banknotes in ample quantities to Deposit Money Banks for further circulation to bank customers.
The central bank also emphasized that “no one should refuse to accept the naira as a means of payment.”
The public is encouraged to accept all CBN-issued banknotes currently in circulation and avoid panic withdrawals.
To reduce the reliance on physical cash, the CBN advised members of the public to embrace alternative payment methods.
