CBN Finally Declares Old and New Notes Legal Tenders

Things you need to know about the introduction of new Naira notes by CBN
Things you need to know about the introduction of new Naira notes by CBN

After subjecting Nigerians to an unnecessary hardship months ago, the Central Bank of Nigeria (CBN) has declared that all Naira notes issued by it remain legal tender.

The Central Bank of Nigeria (CBN) announced that all Naira notes issued by them are still legal tender, despite reports of a shortage of cash in some major cities.

The Director of the CBN’s Corporate Communications Department, Isa AbdulMumim clarified a press statement made available to 9News Nigeria on Wednesday.

Isa AbdulMumim clarified that there are sufficient cash stocks in all locations across the country and urged the public to accept all CBN-issued banknotes currently in circulation.

He also advised the public to embrace alternative modes of payment to reduce pressure on the use of physical cash.

Director AbdulMumim’s clarification was against the backdrop of a reported scarcity of Naira notes across some major cities in the country.

9News Nigeria reports that the CBN has directed all branches to continue issuing different denominations of old and redesigned banknotes in adequate quantities to Deposit Money Banks for onward circulation to bank customers.

According to AbdulMumim, there are sufficient cash stocks in all locations across the country.

“Our attention has been drawn to reports of scarcity of cash across some major cities in the country despite assurances of sufficient cash stocks in all locations across the country.

“There have also been reports of anxiety among some members of the public over the legality or otherwise of old Naira banknotes.

“For the avoidance of doubt, we reiterate that there are sufficient banknotes across the country for all normal economic activity.

“We wish to state unambiguously that every banknote issued by the CBN remains legal tender and should not be rejected by anyone, as stipulated in the CBN Act,” he said.

Abdulmumim urged the Nigerian public to accept all CBN-issued banknotes currently in circulation and guard against panic withdrawals.

He also advised members of the public to continue to embrace alternative modes of payment to reduce pressure on the use of physical cash.

“We reaffirm that there is sufficient stock of currency notes to facilitate normal economic activities.

“Furthermore, to reduce the pressure on the use of physical cash, Members of the public are again advised to continue to embrace alternative modes of payment,” he said.

Recall that the CBN, under the leadership of its embattled former governor, Godwin Emefiele, announced the introduction of the redesign of N200, N500 and N1,000 banknotes in October 2022.

Emefiele had said the banknotes were redesigned due to a request from the President Muhammadu Buhari-led Federal Government.

He explained that the Naira redesign policy would enable the CBN to take control of the currency in circulation, manage inflation, combat counterfeiting, and ransom payment

However, in March, due to the hardship that the policy brought on Nigerians, the Supreme Court declared that the policy breached the fundamental rights of the citizens in various ways.

The apex court also nullified the policy, declaring it as an affront to the 1999 Constitution.

President Bola Tinubu, however, extended the deadline for the legal tender status of the old Naira notes to Dec. 31.

9News Nigeria / NAN

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