In response to concerns about a scarcity of cash in major cities across Nigeria, the Central Bank of Nigeria (CBN) has reiterated the legal tender status of both old and redesigned naira notes.
The CBN issued a public statement on Wednesday, November 8, 2023, assuring the public that all denominations of banknotes issued by the CBN remain valid forms of payment and should not be rejected.
Addressing the reports of cash shortages and public anxiety, the CBN clarified its stance, stating, “Every banknote issued by the Central Bank of Nigeria (CBN) remains legal tender and should not be rejected by anyone, as stipulated in Section 20(5) of the CBN Act, 2007.”
The statement emphasized that there are ample banknotes available nationwide for regular economic activities.
The CBN further directed all its branches throughout the country to continue supplying various denominations of both old and redesigned banknotes to Deposit Money Banks (DMBs) to ensure an adequate circulation of cash.
This directive aims to maintain a stable flow of currency to bank customers and prevent disruptions in economic transactions.
Additionally, the CBN urged the public to accept all CBN-issued banknotes currently in circulation and discouraged panic withdrawals.
To alleviate pressure on physical cash usage, citizens were encouraged to embrace alternative payment methods.
This announcement comes amidst initial concerns about cash scarcity and serves as a reaffirmation of the CBN’s commitment to ensuring a smooth flow of currency in the country’s economy.
