In a recent development, the Central Bank of Nigeria (CBN) issued a statement urging Nigerians not to refuse the acceptance of old Naira notes. This directive has generated significant discussions within the country, with people questioning the rationale behind the call and its potential impact on the economy.
Before delving into the CBN’s directive, it’s essential to understand the evolution of the Naira, Nigeria’s official currency. Over the years, the country has introduced different denominations and designs to combat counterfeiting and enhance security features. The recent focus on the acceptance of old Naira notes brings to light the challenges associated with managing a currency system that has undergone various changes.
The CBN’s directive encourages the acceptance of old Naira notes, emphasizing that these notes remain legal tender and hold the same value as the newer versions. The rationale behind this move includes promoting financial inclusivity, ensuring the circulation of legal currency, and addressing concerns about the rejection of old notes in daily transactions.
The Central Bank of Nigeria (CBN) has stated that all banknotes remain legal tender amid reports of anxiety among the public over the legality of old naira banknotes.
In a statement on Wednesday, November 8, Isa AbdulMumin, director, corporate communications, said the old naira notes should not be rejected, as they will be issued alongside redesigned banknotes in adequate quantities to banks.
CBN 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.”
“We wish to restate that all denominations of banknotes issued by the Central Bank of Nigeria (CBN) remain legal tender,” the apex bank said.
“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.”
