…Speaks on validity of old N1000, N500, N200 denominations

The Central Bank of Nigeria (CBN) yesterday said it has fined nine banks N1.35 billion for failing to make Naira notes available through automated teller machines (ATMs), during the yuletide season.

According to the apex bank, the fines were imposed on the banks to demonstrate zero tolerance for cash flow disruptions.

Each bank was fined N150 million for non-compliance,in line with the CBN’s cash distribution guidelines, following spot checks on their branches. The enforcement action follows repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.

The affected banks include Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, and Sterling Bank Plc.

Communication with the banks revealed that the fines would be debited directly from their accounts with the apex bank.

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The Acting Director of Corporate Communications at the CBN, Mrs. Hakama Sidi Ali confirmed the development, noting that “Ensuring seamless cash flow is paramount to maintaining public trust and economic stability.

“The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines,” she added.

The CBN’s investigations and monitoring will continue to scrutinise cash hoarding and rationing, both at bank branches and by Point-of-Sale (POS) operators. The Central Bank is working with security agencies to crack down on illegal cash sales and operational violations, including enforcing POS operators’ daily cumulative withdrawal limit of N1.2 million.

Governor Olayemi Cardoso, in his address at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, warned banks to strictly adhere to cash distribution policies or face severe penalties. He underscored the CBN’s commitment to maintaining a robust cash buffer to meet Nigerians’ needs. “Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Cardoso said.

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The CBN urged all financial institutions to comply with its guidelines, warning that further violations would attract swift and decisive sanctions.

Meanwhile, the CBN has reiterated the validity of the old N1000, N500, and N200 denominations urging the public to disregard any claims that they have no longer legal tender from December 31, 2024.

In a statement signed by the Ag. Director, Corporate Communications, CBN, Mrs. Sidi Ali, Hakama, the apex bank said: “The Central Bank of Nigeria (CBN) has observed the misinformation regarding the validity of the old ¦ 1000, ¦ 500, and ¦ 200 banknotes currently in circulation.

In line with the Bank’s previous clarifications and to offer further assurance, the CBN wishes to reiterate that the subsisting Supreme Court ruling granted on November 29, 2023, permits the concurrent circulation of all versions of the ¦ 1000, ¦ 500, and ¦ 200 denominations of the Naira indefinitely.

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“For the avoidance of doubt, all versions of the naira, including the old and new designs of N1000, N500, and N200 denominations, as well as the commemorative and previous designs of the N100 denomination, remain valid and continue to be legal tender without any deadline.

“We, therefore, advise the public to disregard any claims that the old series of the aforementioned banknotes will cease to be legal tender on December 31, 2024.

“We urge Nigerians to continue accepting all Naira banknotes (both old and redesigned) for their daily transactions and to handle them with care to ensure their longevity.
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