CBN reaffirms validity of old, new banknotes amidst reports of cash shortage

The Central Bank of Nigeria (CBN) has directed its branches across the country to continue issuing old and new banknotes to deposit money banks.

The CBN gave the directive in a statement signed by its Director of Corporate Communications, Isa AbdulMumin, and posted on its verified X platform, formerly Twitter, on Wednesday.

The apex bank was reacting to reports of cash shortages in major cities across the country.

CBN had a few days ago pinned the complaints about shortage of cash across the bank counter and Automated Teller Machine (ATM) points nationwide on high volume and panic withdrawals by Nigerians.

It assured the citizens of the availability of cash to service the economy.

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The statement read: “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. No one should refuse to accept the naira as a means of payment.

“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.”

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