The Central Bank of Nigeria (CBN) has denied reports claiming that it directed commercial banks to collect old ₦500 and ₦1,000 banknotes from the public during the ongoing currency transition period. :contentReference[oaicite:0]{index=0}
The clarification came amid widespread confusion across the country, as many Nigerians struggled to understand changing guidelines related to the naira redesign policy and cash circulation. :contentReference[oaicite:1]{index=1}
CBN Dismisses Circulating Claims
In an official statement, the apex bank said it had not authorized deposit money banks to collect the old high-denomination notes, describing such claims as false and misleading. :contentReference[oaicite:2]{index=2}
Officials advised the public to rely only on verified information released through official channels and to disregard unofficial messages circulating online and offline. :contentReference[oaicite:3]{index=3}
Policy Focus on Old ₦200 Notes
The CBN reiterated that, in line with government directives at the time, only the old ₦200 notes were being reissued and allowed to circulate temporarily as legal tender. :contentReference[oaicite:4]{index=4}
Old ₦500 and ₦1,000 notes, however, were no longer recognized under the initial policy framework, which contributed to confusion among the public and financial institutions.
Background: Naira Redesign and Cash Crisis
The clarification came during Nigeria’s 2023 currency redesign process, which aimed to reduce cash outside the banking system and strengthen monetary control. :contentReference[oaicite:5]{index=5}
The policy led to a nationwide cash shortage, with long queues at banks and ATMs as citizens attempted to exchange old notes for newly issued currency. :contentReference[oaicite:6]{index=6}
Public Confusion and Banking Challenges
Mixed reports and unofficial messages created uncertainty among bank customers, with some financial institutions reportedly unsure of how to respond to evolving directives.
Many Nigerians faced difficulties accessing cash or depositing old notes, highlighting the challenges associated with rapid policy implementation in a largely cash-dependent economy.
CBN Urges Caution and Verification
The central bank urged media organizations and the public to verify information before sharing or acting on it, emphasizing the importance of accurate communication during sensitive economic transitions. :contentReference[oaicite:7]{index=7}
Authorities stressed that all official updates would be communicated through recognized CBN channels to avoid further misinformation.
Ongoing Developments
The situation continued to evolve as legal decisions and government directives later adjusted the timeline and conditions for the use of old naira notes.
For many observers, the episode underscored the importance of clear communication in financial policy, especially during large-scale economic reforms affecting millions of citizens.