The CBN instructed all its branches to continue to issue different denominations of old and redesigned naira banknotes to deposit money banks for onward circulation to customers.
Contrary to speculations making the round, the Central Bank of Nigeria (CBN) has reassured Nigerians that the old naira notes remain legal tender until further stated otherwise.
The apex bank said this in reaction to heightened fears amongst the citizens that the old banknotes, including the ₦200, ₦500, and ₦1,000 denominations, will pave the way for the redesigned notes by December 2023.
In a statement signed by its Director, Corporate Communication, Isah Abdulmumin, on the evening of Wednesday, November 8, 2023, the CBN said it has not ordered the withdrawal of the old notes from circulation.
“Our attention has been drawn to the report of scarcity of cash across some major cities in 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 remains legal tender and should not be rejected by anyone, as stipulated in Section 20(5) of the CBN Act, 2007,” the statement partly read.
It continued, “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 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.”
In November of 2023, then-President Muhammadu Buhari unveiled the redesigned versions of the three highest naira bills while the CBN announced that the old notes would cease to be legal tender by the end of January this year.
However, the shody roll out of the new notes and the mopping up of the old currency from circulation led to a horrible naira crunch. The currency scarcity caused economic turmoil as many Nigerians were subjected to hardship, triggering riots and vandalisation of banks and Automated Teller Machines (ATMs) in some states.
Some governors on the platform of the ruling All Progressives Congress (APC) dragged the CBN and the Federal Government to the Supreme Court and the apex court ruled in that the three contentious naira notes would remain as legal tender until December 31, 2023.
