CBN says N100 notes remain legal tender, warns against rejection

The Central Bank of Nigeria (CBN) has reaffirmed that all N100 banknotes issued by the apex bank remain legal tender, warning individuals, businesses and financial institutions against refusing to accept either the standard or commemorative versions of the denomination.

The clarification, contained in a circular issued on Wednesday and signed by Hakama Sidi-Ali, the acting director of corporate communications, followed reports that some traders and businesses had begun rejecting certain N100 notes during commercial transactions.

The apex bank said the growing practice made it necessary to remind Nigerians that both versions of the N100 note are legally recognised and remain valid for all financial transactions across the country.

Urging deposit money banks, businesses and the public to stop discriminating against the currency, the CBN stressed that rejecting any officially issued N100 banknote violates the provisions of the Central Bank of Nigeria Act, 2007.

“For the avoidance of doubt, the CBN hereby reiterates that both the commemorative N100 banknote and the standard N100 banknote remain legal tender in Nigeria and must be accepted for all transactions nationwide,” the bank stated.

It explained that the commemorative N100 note introduced to mark Nigeria’s centenary was designed to coexist with, not replace, the existing standard N100 note.

“The commemorative N100 banknote, which was introduced to mark Nigeria’s centenary, did not replace the existing standard N100 banknote,” the statement added.

The CBN further directed commercial banks to continue dispensing N100 banknotes through all approved payment channels to ensure uninterrupted circulation of the denomination.

Warning against the continued rejection of the notes, the apex bank said such actions erode public confidence in the national currency and amount to a breach of existing laws.

“The CBN strongly cautions individuals, businesses, financial institutions, and other economic agents against rejecting the standard N100 banknote. Such rejection constitutes a violation of the provisions of the CBN Act and undermines confidence in the national currency.

“The Bank will not hesitate to apply appropriate enforcement measures against any person or entity found to be in breach,” it warned.

The bank advised Nigerians to continue accepting and transacting with all banknotes officially issued by the CBN, urging the public to ignore misinformation surrounding the country’s currency.

The clarification comes amid recurring speculation over Nigeria’s legal tender. Last year, the apex bank dismissed a viral social media circular claiming it had introduced ₦5,000 and ₦10,000 banknotes, describing the document as fake and urging Nigerians to rely only on information released through its official communication channels.