The Central Bank of Nigeria (CBN) has issued a directive to its branches across the nation to ensure the availability of various denominations of both old and redesigned banknotes, in response to reported cash shortages in major cities. The CBN’s directive aims to address concerns of currency scarcity and reaffirm the availability of legal tender in the country.
The CBN disclosed this directive in an official statement signed by its Director of Corporate Communications, Isa AbdulMumin, and released through its official communication channel on Wednesday.
“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.
“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.
The CBN advised the public 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. Furthermore, to reduce the pressure on the use of physical cash, members of the public are again advised to continue to embrace alternative modes of payment,” the statement noted.
The statement emphasized that there are ample banknotes in circulation to support normal economic activities, dispelling any misconceptions about currency shortages. It also reinforced the fact that all banknotes issued by the CBN are legal tender and should be accepted without reservation, as stipulated in Section 20(5) of the CBN Act of 2007.
To ensure a sufficient supply of banknotes, CBN branches have been directed to continue issuing different denominations of both old and redesigned banknotes to Deposit Money Banks, facilitating the circulation of these notes among bank customers.
The CBN advised the public to embrace and accept all CBN-issued banknotes currently in circulation, and encouraged responsible financial behavior, urging against panic withdrawals. The central bank assured the public that there is a substantial stock of currency notes available to support regular economic activities.
In addition, the CBN highlighted the importance of reducing reliance on physical cash by encouraging the adoption of alternative payment methods, emphasizing the need to embrace more modern and convenient modes of financial transactions.