CBN Says Old Naira Note Remains Legal Tender

By Akinwale Kasali

With less than two months to the expiration of the December 31, 2023 verdict by the Supreme Court on the validity of the Old Naira Note, the Central Bank of Nigeria, CBN, has further reiterated the stance of the Supreme Court, by instructing all Banks that the Old and New Notes remain Legal Tender.

The Apex Bank stressed that all denominations of the Old and redesigned Naira Notes remain valid.

The CBN said this in a statement signed by its Director, Corporate Communications, Isa AbdulMumin, and posted on its X handle on Wednesday, stressing that this is in response to reports of cash shortages in major cities, despite earlier assurances from the CBN about sufficient cash availability nationwide.

The statement read in part:

“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 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 for onward circulation to bank customers.

“We wish to restate that all denominations of banknotes issued by the CBN remain legal tender. In line with Section 20(5) of the CBN Act, 2007.”

It added: “No one should refuse to accept the naira as a means of payment.”

The CBN advised the public 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,” it noted.