Naira Scarcity: CBN Insists  New, Old Banknotes Remain Legal Tender

The Central Bank of Nigeria, CBN, has restated it’s stand on the old naira banknotes. The old N1000, N500, and N200 notes are still legal tender.

For effects, the Yemi Cardoso-led government bank said it has directed all its branches across the country to continue to issue the old and redesign banknotes.

The clarification comes amidst recent scarcity of naira notes, particularly in the northern part of Nigeria. Some persons are said to be hoarding the banknotes in anticipation of end of the year scarcity similar to what was experienced early this year, when the CBN said it was facing out the old naira notes.

This is however the second time the apex bank made its position on the matter known after it issued a statement to that effect last week.

According to a statement issued by CBN Director, Corporate Communications, Isa Abdulmumin, on Wednesday, the apex bank said the clarification was necessary in the face of the reported scarcity being experienced in some parts of the country.

Every banknote remains legal tender and should not be rejected by anyone, the Central Bank of Nigeria has disclosed.

This is as the apex bank directed all its branches across the country to continue to issue different denominations of the old and redesigned banknotes in adequate quantities to deposit money banks.

The statement is titled ‘All Banknotes Issued by the CBN Remain Legal.”

It reads: “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 members of the public 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 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 Central Bank of Nigeria 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

“Consequently, members of the public are advised 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.”