CBN Reaffirms Standard ₦100 Banknote Remains Legal Tender, Warns Against Rejection

The Central Bank of Nigeria (CBN) has clarified that the standard ₦100 banknote remains legal tender nationwide, following reports that some individuals and businesses have refused to accept it over concerns about its validity. The apex bank stressed that both the standard and commemorative ₦100 notes remain officially recognised for all financial transactions across the country.

The Central Bank of Nigeria has dismissed speculation surrounding the legal status of the standard ₦100 banknote, reaffirming that it remains valid for use alongside the commemorative ₦100 note issued to mark Nigeria's centenary. In a press statement issued on Wednesday, the apex bank said it had become aware of reports indicating that some members of the public, businesses, and other stakeholders were rejecting the standard ₦100 note due to misconceptions that it had ceased to be legal tender.

The Bank clarified that the commemorative ₦100 banknote was introduced solely to commemorate Nigeria's 100th anniversary and was never intended to replace the existing standard ₦100 note currently in circulation. According to the CBN, both versions of the ₦100 banknote retain equal legal status and must be accepted for payments and commercial transactions throughout Nigeria.

The apex bank warned that refusing to accept the standard ₦100 note constitutes a violation of the provisions of the CBN Act and could undermine public confidence in Nigeria's currency. It further stated that appropriate enforcement measures may be taken against any individual or organisation found deliberately rejecting legally issued banknotes.

The CBN reiterated its commitment to protecting the integrity of the naira, maintaining confidence in the country's currency, and ensuring the smooth circulation of all officially issued banknotes. The Bank also advised members of the public to seek clarification through its official communication channels whenever uncertainties arise regarding Nigerian currency.

"According to the Central Bank of Nigeria, both the commemorative ₦100 banknote and the standard ₦100 banknote remain legal tender and must be accepted for all transactions across Nigeria.

The apex bank explained that the commemorative ₦100 note introduced during Nigeria's centenary celebration did not replace the existing standard ₦100 banknote.

According to the CBN, rejecting the standard ₦100 banknote violates provisions of the CBN Act and undermines confidence in the national currency.

The Bank further stated that it remains committed to safeguarding the integrity of the naira while ensuring public confidence in all legally issued Nigerian banknotes"

The acceptance of legal tender is fundamental to economic stability and the smooth functioning of commercial transactions. Misunderstandings about the validity of banknotes can disrupt business activities, inconvenience consumers, and undermine public confidence in Nigeria's financial system. By clarifying the legal status of both the standard and commemorative ₦100 banknotes, the Central Bank of Nigeria aims to prevent unnecessary rejection of valid currency, ensure uniform acceptance nationwide, and strengthen confidence in the naira.

What this means to the public is that, individuals, traders, transport operators, retailers, banks, and businesses should continue accepting both the standard and commemorative ₦100 banknotes without hesitation. Anyone refusing to accept the standard ₦100 note risks violating existing financial regulations and may face regulatory action where applicable.

The Central Bank of Nigeria introduced a commemorative ₦100 banknote in 2014 to celebrate Nigeria's centenary. Although the commemorative design entered circulation alongside the existing note, the standard ₦100 banknote has remained legal tender. From time to time, misconceptions surrounding commemorative currency have led to confusion among sections of the public, prompting regulatory clarification by the apex bank.

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The CBN's clarification highlights the importance of public financial literacy in maintaining confidence in Nigeria's monetary system. False assumptions about the validity of currency can unnecessarily disrupt commerce, particularly in markets where cash transactions remain dominant.

Beyond regulatory enforcement, continuous public education remains essential to preventing misinformation about legal tender. Financial institutions, market associations, and businesses all have a role to play in ensuring accurate information reaches consumers. A trusted currency system depends not only on sound monetary policy but also on widespread public understanding and acceptance of officially issued banknotes.