In a bid to address growing concerns about the legal status of both old and new naira banknotes, the Central Bank of Nigeria (CBN) has reaffirmed their acceptance as legal tender across the country.
This reassurance came in an official statement released on Wednesday, November 8, 2023, signed by Dr. Isa AbdulMumin, Director of Corporate Communications at the CBN.
The apex bank emphasized that it maintains an ample supply of currency notes to ensure the smooth functioning of economic activities within the nation.
Dr. AbdulMumin stated, “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.”
This declaration is expected to alleviate concerns that had arisen regarding the acceptance of old Naira notes, as well as the newly redesigned currency. The CBN’s announcement aims to prevent panic withdrawals and encourage the public to continue using Naira for transactions, both in cash and electronically.
Dr. AbdulMumin acknowledged the reports of a shortage of physical cash in certain major cities, despite the CBN’s earlier assurances of sufficient cash reserves.
He stated, “Our attention has again been drawn to 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.”
In response to these reports, the CBN directed its branches nationwide to continue issuing various denominations of both old and redesigned banknotes in adequate quantities to deposit money banks (DMBs).
This move is expected to ensure a steady supply of Naira notes to meet the demands of the public.
The CBN also emphasized the importance of reducing the reliance on physical cash by encouraging the adoption of alternative payment methods, such as digital and electronic transactions.
“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,” Dr. AbdulMumin stressed.
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