CBN Directs Banks To Issue, Accept Old, Redesigned Banknotes

The directive followed the order of the Supreme Court, the apex bank said.


A vendor holds banknotes rejected by traders at Awgbu market in Anambra State, southeast Nigeria, on February 17, 2023.
File: A vendor holds banknotes rejected by traders at Awgbu market in Anambra State, southeast Nigeria, on February 17, 2023. (Photo by PIUS UTOMI EKPEI / AFP)

 

The Central Bank of Nigeria (CBN) has directed all its branches to continue to issue and accept all denominations of Nigerian banknotes, both old and re-designed ones, to and from deposit money banks (DMBs).

This was contained in a statement on Wednesday by the apex bank’s spokesperson, Sidi Ali Hakama, saying the directive followed the order of the Supreme Court.

READ ALSO: Old, New Naira Notes To Co-Exist Till Further Notice, Supreme Court Rules

“Accordingly, in line with Section 20(5) of the CBN Act 2007, all banknotes issued by the Central Bank of Nigeria (CBN), will continue to remain legal tender, indefinitely,” the statement read.

“Members of the public are enjoined to continue to accept all Naira banknotes (old or redesigned) for their day-to-day transactions and handle these banknotes with the utmost care, to safeguard and protect the lifecycle of the banknotes.”

The CBN also urged the public to embrace alternative modes of payment, electronic channels, in order to reduce pressure on the use of physical cash.

On Wednesday, the Supreme Court granted the application of the Minister of Justice and Attorney-General of the Federation, Lateef Fagbemi to extend the use of old naira banknotes indefinitely.

The seven-man panel led by Justice Inyang Okoro ruled that both old and new notes should continue to remain legal tender until the Federal Government put a process in place for its replacement or redesign after due consultation with relevant stakeholders.