In a recent public statement, the CBN Urges Acceptance Central Bank of Nigeria (CBN) has reaffirmed the legal tender status of all banknotes it has issued, emphasizing that no one should reject them. The directive comes amidst reports of cash scarcity in some major cities, despite earlier assurances by the CBN of sufficient cash stocks nationwide.
The Director of Corporate Communications of the CBN, Isah Abdulmumin, conveyed this message in a statement titled ‘All Banknotes Issued by the CBN Remain Legal Tender.’ He clarified that there is an ample supply of banknotes for normal economic activities and urged the public to accept all CBN-issued banknotes currently in circulation.
The CBN Urges Acceptance has instructed its branches across the country to continue issuing different denominations of both old and redesigned banknotes to deposit money banks. The move aims to alleviate concerns and ensure the seamless circulation of currency.
The statement also reminded the public of the legal provisions supporting the acceptance of Naira as a means of payment, citing Section 20(5) of the CBN Act, 2007. The apex bank urged citizens to avoid panic withdrawals and recommended embracing alternative modes of payment to reduce the reliance on physical cash.
This clarification comes as the country approaches the December 31, 2023 deadline, set by the Supreme Court, for the legitimacy of old Naira notes. The CBN’s earlier decision to redesign some denominations and promote cashless transactions faced opposition, causing economic challenges and a GDP growth decline to 2.31% in the first quarter of 2023.
Nigerians on social media expressed relief at the recent announcement, with many sharing their frustrations during the implementation of the cashless policy. The President of the Bank Customers Association of Nigeria, Dr. Uju Ogubunka, commended the CBN’s clarification, stating that it addresses doubts in the economy.
However, concerns were raised by some, questioning the Supreme Court ruling and seeking clarity on the continuity of the old notes’ legal tender status. The National President of the Association of Mobile Money and Bank Agents in Nigeria, Victor Olojo, highlighted the confusion caused by the discrepancies between old and new notes. He called for a clear plan from the CBN to address these concerns and urged the apex bank to be resolute in its decision-making process regarding currency denominations.
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