CEM REPORT, FINANCE | Nigerians recalling the traumatising and frustrating events during the old notes and redesigned notes saga which birth the cash crunch are taking safety measures to avoid its reoccurrence in any might. Hence the hoarding of banknotes, creating artificial scarcity of notes across major cities in the country. While the CBN has assured the availability of notes to go around it seems Nigerians are still in doubt.
To this end, the Central Bank of Nigeria (CBN) has stated that the old and redesigned notes remain legal tender. It further said it has directed all its branches to continue to issue different denominations of old and redesigned banknotes.
The CBN stated this in a statement on its official X handle (formally Twitter). The statement dated November 8, 2023, and signed by Isa Abdul Mumin, Director, Corporate Communications noted 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.
“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.
“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 (DMBS) for onward circulation to bank customers.”
The CBN advised Nigerians and the general public to accept all CBN-issued banknotes currently in circulation and guard against panic withdrawals stating that there is sufficient stock of currency notes to facilitate normal economic activities.
The apex bank stresses that “no one should refuse to accept the Naira as a means of payment.”
”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 added.