Naira Banknotes Remain Legal Tender, Says CBN
The Central Bank of Nigeria (CBN) has dismissed rumors claiming that the previously demonetized naira banknotes are no longer legal tender. The bank also denied reports of cash shortages in major Nigerian cities.
Central Bank Issues Statement
The CBN issued a statement via Twitter on Nov. 8, clarifying that all banknotes it has ever issued remain legal tender and should not be rejected. It also instructed CBN branches to continue issuing different denominations of both old and redesigned naira banknotes.
The demonetization process was initiated by former governor Godwin Emefiele to counter activities of parallel market foreign exchange dealers and currency hoarders. However, local media reports claimed it was aimed at derailing a presidential aspirant’s campaign.
CBN Warns Against Cash Hoarding
After initially refusing to extend the demonetization deadline, the CBN eventually relented due to cash shortages caused by insufficient supply of redesigned banknotes. The bank warned against panic withdrawals and urged the public to use alternative payment methods.
Hot Take: CBN Asserts Naira Banknotes Legality
The CBN has reaffirmed that all naira banknotes remain legal tender, dismissing rumors of demonetization. The central bank’s warning against rejecting old banknotes aims to maintain stability in the Nigerian financial system and discourage panic withdrawals.
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