The Central Bank of Nigeria (CBN) has issued instructions to all of its branches across the country to ensure the continued distribution of various denominations of both old and redesigned banknotes in substantial quantities to deposit money banks. This directive was communicated through a statement signed by the Director of Corporate Communications, Isa AbdulMumin, and posted on the CBN’s official X handle on Wednesday.
This action comes as a response to reports of cash shortages in major cities, despite previous assurances from the CBN regarding the availability of sufficient cash nationwide. The CBN aims to address the issue of cash scarcity and maintain the smooth functioning of the financial system.
Part of 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.”
It added that “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,” it noted.