Old Naira notes remain legal tender, no one should reject them — CBN

The Central Bank of Nigeria (CBN) has clarified that all banknotes it has issued remains a legal tender and should not be rejected by anyone.

It said it is in accordance with Section 20(5) of the CBN Act, 2007.

Isa AbdulMumin, the Director, Corporate Communications of CBN, said in a statement on Wednesday that the announcement became necessary to allay the anxiety of some members of the public over the legality of the old banknotes.

The apex bank said: “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 (CBN) remains legal tender and should not be rejected by anyone as stipulated in Section 20(5) of the CBN Act, 2007.”

It also directed all its branches across the country to continue to issue different denominations of the old and the redesigned banknotes in adequate quantities to deposit money banks.

“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. 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,” the statement said.

Persecondnews recalls that in October 2022, Godwin Emefiele, former CBN governor, had unveiled plans to redesign the N200, N500, and N1,000 notes, urging citizens to deposit their old notes before January 31, 2023, as they would lose their status as legal tender beyond that date.

The controversial monetary policy was challenged at the Supreme Court, leading to the extension and validity of the N200, N500, and N1,000 Naira notes till December 31, 2022.

A seven-member panel of the court led by John Okoro unanimously directed that the CBN must continue to receive the old notes from Nigerians.

The court held that the directive of President Muhammadu Buhari for the redesign of the new notes and withdrawal of the old notes without due consultations is invalid.