Nigeria: CBN Mandates Banks to Accept Both Old and Redesigned Banknotes

The Central Bank of Nigeria (CBN) has instructed all of its branches to continue issuing and accepting all denominations of Nigerian banknotes, encompassing both the old and redesigned versions, to and from deposit money banks (DMBs).

This directive comes as a response to the Supreme Court’s order and was communicated in a statement on Wednesday by the CBN’s spokesperson, Sidi Ali Hakama. The statement clarified that, as per Section 20(5) of the CBN Act 2007, all banknotes issued by the CBN will 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.”

In addition to emphasizing the acceptance of both old and redesigned banknotes, the CBN encouraged the public to adopt alternative payment methods such as electronic channels to alleviate reliance on physical cash.

The Supreme Court, on Wednesday, approved the Minister of Justice and Attorney-General of the Federation, Lateef Fagbemi’s application to extend the use of old naira banknotes without a set timeframe. The ruling stated that both old and new notes would remain legal tender until the Federal Government establishes a process for their replacement or redesign after due consultation with relevant stakeholders.