The Central Bank of Nigeria (CBN) on Wednesday stated that all banknotes issued by it remained legal tender and, therefore, should not be rejected by anyone as stipulated in Section 20(5) of the CBN Act, 2007
The apex bank, in a statement issued by its Director, Corporate Communications Department, Dr. Isa AbdulMumin, made the clarification following reports of a scarcity of cash across some major cities in the country despite assurances of sufficient cash stocks in all locations across the country.
The Director also noted that there had also been reports of anxiety among some members of the public over the legality or otherwise of old Naira banknotes, saying that for the avoidance of doubt, there are sufficient banknotes across the country for all normal economic activities.
He stated based on the sufficient banknotes, the management had directed all branches of the CBN nationwide 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.
AbdulMumin further clarified: “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.
“Consequently, members of the public are advised to accept all CBN-issued banknotes currently in circulation and guard against panic withdrawals. 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”, the Director added.
