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Old Banknote Remains Legal Tender, Says CBN
Every banknote remains legal tender and should not be rejected by anyone, the Central Bank of Nigeria has disclosed.
This is as the apex bank directed all its branches across the country to continue to issue different denominations of the old and redesigned banknotes in adequate quantities to deposit money banks.
The apex bank stressed that every banknote that it has issued remains legal tender and should not be rejected by anyone. This disclosure was contained in a public statement issued by the Director of Corporate Communications of the CBN, Isah Abdulmumin, on Wednesday, in Abuja.
It was titled, ‘All Banknotes Issued by the CBN Remain Legal Tender.’ Isa said the directive follows reports of scarcity of cash across some major cities in the country despite initial assurances by the CBN of sufficient cash stocks in all locations across the country.
The statement read, “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 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.
“We wish to restate that all denominations of banknotes issued by the Central Bank of Nigeria remain legal tender. 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.”
Isa further advised members of the public to reduce the pressure on the use of physical cash and embrace alternative modes of payment.
Recently, the apex bank issued a directory to the public that it had sufficient stock of currency notes following alleged reports of scarcity of cash in banks, automated teller machines, Points of Sale, and Bureaux de Change in some major cities across the country.
The bank noted that the cash scarcity in some locations was due to high volume withdrawals from CBN branches by Deposit Money Banks and panic withdrawals by customers from the ATMs.
It said, “While we note the concerns of Nigerians on the availability of cash for financial transactions, we wish to assure the public that there is sufficient stock of currency notes for economic activities in the country. The branches of the CBN across the country are also working to ensure the seamless circulation of cash in their respective states of operation.”
The apex bank has had to clarify the situation of the naira because of a December 2023 deadline looming on the legitimacy of old naira notes.
CBN Cashless Policy
In October 2022, the former Governor of the Central Bank of Nigeria, Godwin Emefiele, disclosed the apex bank’s plan to redesign some naira denominations (N200, N500, and N1000 notes) and reduce currency circulation in a bid to boost cashless transactions in the economy.
At the time, Emefiele, stated this move was targeted at controlling currency in circulation as well as curbing counterfeit currency and ransom payments to kidnappers and terrorists. He highlighted that the existing notes would retain their legal tender status until January 31, 2023.
He said, “Indeed, the integrity of a local legal tender, the efficiency of its supply, and its efficacy in the conduct of monetary policy are some of the hallmarks of a great central bank.
“In recent times, however, currency management has faced several daunting challenges that have continued to grow in scale and sophistication with attendant and unintended consequences for the integrity of both the CBN and the country.”
He also said the move would curb inflation in the economy. However, this move was kicked against by organised private sector, labour unions, and almost everyone in the economy. According to the International Monetary Fund and the World Bank, the short timeframe for the implementation of the policy caused hardships in the country.
The aftermath of the cash scarcity that followed the implementation caused Nigeria’s Gross Domestic Product growth to fall to 2.31 per cent in the first quarter of 2023. After numerous interventions, the Supreme Court, in 2023, mandated the apex bank to retain the legality of old N1,000, N500, and N200 notes alongside their redesigned counterparts until December 31, 2023.
Some reports estimated that the economy lost about N20tn to the CBN’s move.
Nigerians rejoice
Following the recent announcement that old naira notes will remain legal tender, Nigerians took to X, formerly Twitter, in support of the apex’s directive. A lot of Nigerians voiced their relief while expressing the frustrations they faced during the cashless policy implementation.
@theonly1acre tweeted, “God bless the day I stood against this worthless retrogressive policy initiated by Godwin Emefiele. It was quite unpopular at that time, especially as it seemed to have favoured the opposition, but I knew it was crap. All naira notes remain legal tenders.”
@theemmanuelashe tweeted, “Upon the whole brouhaha of naira redesign. Nov ‘22 – Feb ‘23 was a nightmare for Nigerians.”
@AzeezAd43157165, said, “All Banknotes issued by CBN remain legal tender.” @shineskybaba, said, “Way to go. Prompt response to quell scarcity and economic sabotage.”
@PreciousOnukogu, tweeted, “In simple terms — Old and New Naira Notes are still valid. Why beat around the bush? We too like to dey make things difficult for ourselves and for others in this country.”
The Punch
News
Stampede: Several Killed, Injured in Abuja, Anambra in Rush to Receive Palliatives
Not fewer than 10 persons have reportedly died on Saturday morning while several others were injured in a stampede at the Holy Trinity Catholic Church in Maitama, Abuja, during the distribution of food items to vulnerable and elderly individuals.
The Police Public Relations Officer, FCT Police Command, SP Josephine Adeh, said the incident, which happened around 6:30am, resulted in a stampede that claimed the lives of 10 individuals, including four children, and left 8 others with varying degrees of injuries.
While four of the injured have been treated and discharged, the remaining victims are currently receiving medical care.
The FCT Police Rapid Response Squad and the FCT Joint Task Force said they had successfully evacuated the remaining crowd, which numbered over a thousand.
“The FCT Police Command extends its heartfelt condolences to the families of the deceased and wishes a swift recovery to the injured. In a show of compassion and support,” adding that the Commissioner of Police, CP Olatunji Disu has visited the victims in the hospital to offer assistance and reassurance during this difficult time.
To prevent such tragic incidents in the future, the command has mandated all organisations, religious bodies, groups, or individuals planning public events, charitable activities, or large gatherings in the FCT, to notify the police command in advance.
“This notification is crucial for the deployment of adequate security measures to ensure public safety and prevent avoidable tragedies.
“Failure to comply with this directive will result in the organizers being held liable for any incidents or loss of life resulting from negligence,” the statement added.
Similarly in Anambra State, an undisclosed number of people were reportedly trampled to death in Okija, venue of the collection of Christmas rice largesse donated by an indigene of the community.
The Police Public Relations Officer, Anambra State Police Command. SP Tochukwu Ikenga, stated that the incident happened in the early hours of Saturday at Okija.
Preliminary information revealed that the incident occurred when a known philanthropist from the Okiaja community, on his yearly schedule activities, was distributing some palliatives to the members of the community to provide succour to the less privileged, according to the police statement.
“Unfortunately, before the event could start, a large number of uncontrolled persons took over the event area which resulted in a stampede,” the police statement said.
In a video posted online, male voice was heard saying: “These are people (referring to the corpses lying on the ground) who went to share rice at Obi Jackson’s house. We are at Our Ladies (Hospital) now. They were trampled to death. Look at them (about 15 in number), they went to get a share of Obi Jackson’s rice and they were trampled to death. Look at them, including women. They were trampled to death. This person is dead. It’s happening now. Look at many dead bodies everywhere. They are at Our Ladies now. Just watch and see. There are many of them, even pregnant women are among them. It’s happening now, 21st December, it’s an abomination. Look at them, they are still bringing more people. They said some are still unconscious and they are bringing them too. It’s an abomination.”
Our Ladies is a ‘big’ hospital in Ihiala, Anambra State.
The Anambra Police Command, in a statement signed by the Public Relations Officer, SP Tochukwu Ikenga, said its operatives have taken over the scene for proper investigation.
“Anambra State Police Operatives have taken over the scene in Okija to avert further unforeseen circumstances where an alleged stampede occurred in the early hours of today 21/12/2024, that led to some persons being fatally wounded.
“Preliminary information reveals that a known Philanthropist from the Okija Community, on his yearly schedule shares some palliatives to the members of the community to provide succour to the less privileged. Unfortunately, before the event could start, a large number of uncontrolled persons took over the event area which resulted in a stampede.
“Though the details of the affected persons as still sketchy, Police Operatives have taken over the scene for proper investigation, please.
“Further details shall be Communicated”
It would be recalled that a few days ago, a similar incident occurred in Ibadan, Oyo State, where a stampede during a children’s funfair resulted in the deaths of at least 35 children and left six others critically injured.
News
Obi Has Offered to Meet Farotimi’s Bail, Says Tanko Yunusa
The presidential candidate of the Labour Party in the 2023 general elections, Mr. Peter Obi, has offered to meet the bail conditions of human rights lawyer, Mr. Dele Farotimi, according a statement by Tanko Yunusa, on X.
An Ekiti court has said Farotimi can be released on bail in a case where he’s accused of damaging Afe Babalola’s reputation.
The bail requirements are as follows: N30 million bond, two people to vouch for him (and one must own a house), give up his passport, and agree not to talk to the media.
Yunusa, who is an ally of the former presidential candidate, wrote that Obi believes in following the law and wants to see this situation resolved in a way that works for everyone.
Yunusa quoted Obi’s offer directly: “I consulted His Excellency, Peter Obi, as the leader of the Obidient Movement. As a respecter of the rule of law, due process, and order, he offered to take Dele Farotimi on the bail conditions.”
Yunusa also mentioned that Obi thanked the courts and everyone involved, saying Obi wants to see the situation resolved fairly for all parties while respecting the legal system.
News
Ekiti Court Grants Dele Farotimi N30m Bail
A magistrates’ court sitting in Ado-Ekiti, the Ekiti State capital, has granted N30 million bail to embattled lawyer and human rights activist Dele Farotimi.
At the hearing of the bail application on Friday, Magistrate Abayomi Adeosun ruled in favour of Farotimi’s bail request.
The magistrate stipulated that the bail conditions included two responsible sureties and required Farotimi to surrender his international passport to the court. Additionally, he was instructed not to grant media interviews while the case was ongoing.
The Ekiti Police Command had arraigned Farotimi following a petition from an elder statesman and Senior Advocate of Nigeria, Afe Babalola, who accused the activist of criminally defaming him in his recently-released book.
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