Central Bank of Nigeria (CBN) Urges Acceptance of Old Banknotes Amidst Legal Tender Concerns


Central Bank of Nigeria (CBN) Urges Acceptance of Old Banknotes Amidst Legal Tender Concerns

In a recent development, the Central Bank of Nigeria (CBN) has issued a warning against the rejection of any banknotes it has previously issued.

In accordance with the provisions outlined in the CBN Act of 2007. This announcement comes amidst growing concerns that older banknotes may lose their status as legal tender by December 2023.

Following a Supreme Court ruling on March 3, it was decreed that old N200, N500, and N1000 notes will remain valid until December 31, 2023.

This decision came in response to a suit filed by 16 states of the Federation, seeking clarification on the legality of the CBN's policy.

In a statement released on Wednesday, signed by the Director of Corporate Communication, Isah Abdulmunin.

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The CBN clarified that it has not initiated the withdrawal of old banknotes.

The bank emphasized that there is an ample supply of banknotes across the country to support regular economic transactions.

The CBN emphasized, “Every banknote issued by the Central Bank of Nigeria (CBN) remains legal tender.

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And should not be rejected by anyone, as stipulated in Section 20(5) of the CBN Act, 2007." 

Furthermore, branches of the CBN have been instructed to continue providing various denominations of both old and redesigned banknotes to Deposit Money Banks for circulation to customers.

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It is crucial for the public to understand that all denominations of banknotes issued by the CBN remain valid for transactions.

In line with Section 20(5) of the CBN Act, 2007, it is unlawful to refuse to accept the Naira as a form of payment.

Consequently, members of the public are strongly advised to accept all CBN-issued banknotes currently in circulation and to avoid panic withdrawals.

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This directive from the CBN aims to ensure smooth financial transactions and maintain the stability of the Nigerian currency.

It is imperative for businesses and individuals to be aware of and comply with these guidelines to avoid any disruptions in their economic activities.

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