The Central Bank of Nigeria, CBN, has stated that all bank denominations currently in circulation remain legal tender.
CBN Director of Corporate Communications, Isa AbdulMumin, in a statement made available to CRUX NEWS on Wednesday, dismissed claims of scarcity of cash in some cities of Nigeria.
“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.
“There have also been reports of anxiety among some public members over the legality or otherwise of old Naira banknotes. For the avoidance of doubt, while reiterating that there are sufficient banknotes across the country for all normal economic activity, we wish to state unambiguously that every banknote issued by the Central Bank of Nigeria (CBN) remains legal tender and should not be rejected by anyone, as stipulated in Section 20(5) of the CBN Act, 2007.
“Accordingly, branches of the CBN across the country have been directed 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.
“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.
“Public members are advised to accept all CBN-issued banknotes currently in circulation and guard against panic withdrawals.
“We reaffirm that sufficient stock of currency notes facilitates 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.”
Recall that the apprehension among the public comes as the 31st December deadline for the validity of N200, N500 and N1000 naira notes draws near.
Recall that in March, the Supreme Court affirmed the validity of the old Naira amid the controversy which clouded Naira’s redesign policy.
