The Central Bank of Nigeria (CBN) has emphasized that all banknotes issued by the institution remain legal tender and should not be rejected.

In response to reports of cash scarcity in major cities, the CBN has directed its branches nationwide to continue issuing various denominations of both old and redesigned banknotes in sufficient quantities to deposit money banks.

The public statement, issued by the Director of Corporate Communications, Isah Abdulmumin, addressed concerns over the legitimacy of old Naira banknotes and reassured the public of the adequacy of currency stocks across the country for normal economic activities.

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The CBN cited Section 20(5) of the CBN Act, 2007, stating that every banknote it has issued remains legal tender and should not be refused by anyone.

The directive aims to alleviate anxiety among the public and emphasizes that there is enough currency for regular economic transactions.

Branches of the CBN have been instructed to ensure the issuance of various denominations to deposit money banks for circulation to customers.

The public is urged to accept all CBN-issued banknotes and avoid panic withdrawals.

The statement also encourages citizens to explore alternative modes of payment to reduce the reliance on physical cash.

The recent cash scarcity, attributed to high-volume withdrawals by Deposit Money Banks and panic withdrawals from ATMs, prompted the CBN to clarify the situation.

The bank assured that there is a sufficient stock of currency notes to facilitate economic activities and encouraged the public to trust in the availability of currency for normal transactions.

The CBN’s decision to redesign some naira denominations, as part of its cashless policy, faced opposition from various sectors.

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Former CBN Governor Godwin Emefiele announced plans to redesign N200, N500, and N1000 notes to boost cashless transactions and reduce currency circulation.

Despite criticisms and hardships caused by the short timeframe for implementation, the Supreme Court mandated the CBN to retain the legality of old N1,000, N500, and N200 notes alongside their redesigned counterparts until December 31, 2023.