In response to reports of cash shortages in some major cities across Nigeria, the Central Bank of Nigeria (CBN) has taken a resolute stance to ensure that old and redesigned naira notes continue to be recognized as legal tender nationwide. The CBN reaffirms that every banknote it has issued should not be rejected, aiming to address growing concerns and anxiety among the public.
The CBN's official statement, released on Wednesday, November 8, 2023, reiterates the availability of sufficient banknotes across the country for normal economic activities. The bank underscores the legal status of all denominations of banknotes issued by the CBN, as stipulated in Section 20(5) of the CBN Act of 2007.
The statement reads, "Accordingly, branches of the CBN across the country have been directed to continue to issue different denominations of old and redesigned banknotes in adequate quantities to Deposit Money Banks (DMBs) for onward circulation to bank customers. We wish to restate that all denominations of banknotes issued by the Central Bank of Nigeria (CBN) remain legal tender. In line with Section 20(5) of the CBN Act 2007, no one should refuse to accept the Naira as a means of payment."
The CBN's decisive action seeks to alleviate the concerns about the legality of old naira notes and encourages the public to accept all CBN-issued banknotes currently in circulation. The bank also emphasizes the existence of an ample supply of currency notes to support regular economic activities.
Furthermore, the CBN advises the public to embrace alternative modes of payment to reduce the pressure on the use of physical cash. This announcement reflects the CBN's commitment to maintaining the stability of the Nigerian currency and ensuring that citizens can conduct their economic transactions with confidence.
As cash shortages in major cities continue to be a concern, the CBN's assurance of the legality and availability of old and redesigned naira notes aims to reassure the public and prevent panic withdrawals. The central bank's measures are part of its broader strategy to support the normal functioning of the Nigerian economy, even in the face of evolving payment preferences and economic challenges
The CBN's official statement, released on Wednesday, November 8, 2023, reiterates the availability of sufficient banknotes across the country for normal economic activities. The bank underscores the legal status of all denominations of banknotes issued by the CBN, as stipulated in Section 20(5) of the CBN Act of 2007.
The statement reads, "Accordingly, branches of the CBN across the country have been directed to continue to issue different denominations of old and redesigned banknotes in adequate quantities to Deposit Money Banks (DMBs) for onward circulation to bank customers. We wish to restate that all denominations of banknotes issued by the Central Bank of Nigeria (CBN) remain legal tender. In line with Section 20(5) of the CBN Act 2007, no one should refuse to accept the Naira as a means of payment."
The CBN's decisive action seeks to alleviate the concerns about the legality of old naira notes and encourages the public to accept all CBN-issued banknotes currently in circulation. The bank also emphasizes the existence of an ample supply of currency notes to support regular economic activities.
Furthermore, the CBN advises the public to embrace alternative modes of payment to reduce the pressure on the use of physical cash. This announcement reflects the CBN's commitment to maintaining the stability of the Nigerian currency and ensuring that citizens can conduct their economic transactions with confidence.
As cash shortages in major cities continue to be a concern, the CBN's assurance of the legality and availability of old and redesigned naira notes aims to reassure the public and prevent panic withdrawals. The central bank's measures are part of its broader strategy to support the normal functioning of the Nigerian economy, even in the face of evolving payment preferences and economic challenges
