CBN confirms legal tender status for all naira banknotes

Naira weakens despite three-month low for U.S. dollar index
Naira weakens despite three-month low for U.S. dollar index

In response to reports of cash scarcity in major cities and public anxiety over old naira banknotes, the Central Bank of Nigeria (CBN) reassured citizens that every banknote issued by the CBN remains legal tender.

The Director of Corporate Communications, Isa AbdulMumin, highlighted the sufficiency of banknotes across the country for normal economic activities.

Despite the availability of redesigned banknotes, the CBN emphasized that old naira notes should not be rejected, as both versions will be circulated in adequate quantities to banks for the convenience of their customers.

The CBN referred to Section 20(5) of the CBN Act, 2007, stating that refusing the Naira as a means of payment is prohibited.

To address concerns and maintain financial stability, CBN branches are instructed to continue supplying various denominations of both old and redesigned banknotes to banks for onward circulation.

The apex bank urged the public to accept all CBN-issued banknotes currently in circulation, emphasizing that there is sufficient stock to facilitate normal economic activities.

While acknowledging the current cash-related challenges, the CBN encouraged citizens to embrace alternative payment methods to alleviate pressure on physical cash transactions.