CBN Warns Against Panic Withdrawals, Says Old Notes Remain Legal Tender

Posted by African Examiner Business News, Latest Headlines, News Wednesday, November 8th, 2023

(AFRICAN EXAMINER) – The Central Bank of Nigeria (CBN) has again assured Nigerians of sufficient naira notes in the country, and warned against panic withdrawals.

The apex bank, in a statement on Wednesday, reiterated that old and new naira notes remained legal tender.

“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,” said CBN spokesman, Isa AbdulMumin.

“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, no one should refuse to accept the Naira as a means of payment.”

The apex bank “reaffirm that there is sufficient stock of currency notes to facilitate normal economic activities”.

Last October, then CBN Governor, Godwin Emefiele, announced plans to redesign the three highest naira bills and asked Nigerians to deposit their old notes before January 31, 2023, when they would cease to be legal tender.

The naira crunch caused economic turmoil as many Nigerians suffered hardship, leading to riots in some states and the burning of some banks and Automated Teller Machines (ATMs).

The apex bank subsequently said then President Muhammadu Buhari had approved an extension of the deadline for the naira swap.

Some then governors of the All Progressives Congress (APC) dragged the CBN and the Federal Government to the Supreme Court and the apex court ruled in March 2023 that the old N200, N500, and N1,000 notes would remain as legal tender until December 31, 2023.