VAM News update

THE Central Bank of Nigeria (CBN) has reiterated that all denominations of banknotes it has issued remain legal tender, and should not be rejected by anyone, as stipulated in Section 20(5) of the CBN Act, 2007.

Also, the apex restated that there are sufficient banknotes across the country for all normal economic activity, stressing that every banknote issued by the CBN remains legal tender.

The Bank said it has directed all its branches across the country 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 highlighted this due to reports of anxiety among some members of the public over the legality or otherwise of old Naira banknotes.

It advised members of the public to accept all CBN-issued banknotes currently in circulation and guard against panic withdrawals and reaffirmed that there is sufficient stock of currency notes to facilitate normal economic activities.

However, the apex bank urged members of the public to continue to embrace alternative modes of payment in order to reduce the pressure on the use of physical cash.

Dr. Isa AbdulMumin Director, Corporate Communications of the Central Bank of Nigeria in a statement on Wednesday 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.

“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.

“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.

“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”.