The Central Bank of Nigeria (CBN) has recently addressed the public’s worries regarding the validity of old Naira notes and rumors of cash shortage. Isa AbdulMumin, the CBN’s Director of Corporate Communications, has affirmed that all banknotes issued by the CBN, including the redesigned ones, are legal tender, as stated in Section 20(5) of the CBN Act 2007.
Ensuring Ample Supply of Banknotes
AbdulMumin has instructed CBN branches to maintain a steady supply of both old and redesigned banknotes to Deposit Money Banks (DMBs). He stressed that there is a sufficient number of banknotes for regular economic activities and they should not be rejected as a form of payment. To ease the reliance on physical cash, the CBN has advocated for the use of alternative payment methods.
The Central Bank has reassured the public that there is an adequate amount of currency to support normal economic activities and cautioned against panic withdrawals. The public has been urged to accept all circulating CBN-issued banknotes. This action by the CBN is a response to rumors of cash scarcity and public worries about the validity of old Naira notes.
The actions taken by the CBN to ensure the availability of cash and the validation of old Naira notes are beneficial for the economy. It not only maintains public trust in the country’s financial system but also promotes the use of alternative payment methods, which can lead to a more efficient and inclusive financial system. (Source)