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CBN Complies with Supreme Court Order, Says Old Naira Notes Remain Legal Tender

by Editor
Posted by Editor 136 views
By Chisaa Okoye (Business reporter)

Following a public backlash against its poorly implemented naira redesign policy that has brought untold hardship to Nigerians and its defiance of Supreme Court orders, the Central Bank of Nigeria (CBN), Monday evening said the old N200, N500 and N1000 notes remain legal tender until December 31, 2023.

This is coming shortly after President Muhammadu Buhari said he never told the CBN Governor, Godwin Emefiele and the Attorney General of the Federation (AGF), Abubakar Malami to disobey any court orders involving the government and other parties.

President Buhari said the CBN Governor had no reason not to comply with the Supreme Court order on naira redesign on the excuse of waiting for his directives.

Following the President’s assertions, the CBN, Monday night, announced that the old naira notes would co-exist with new ones till December 31, 2023 as ordered by the apex court.

A statement last night by Ag. Director, Corporate Communication at the CBN, Isa Abdulmumin read: “In compliance with the established tradition of obedience to court orders and sustenance of the Rule of Law Principle that characterized the government of President Muhammadu Buhari, and by extension, the operations of the Central Bank of Nigeria (CBN), as a regulator, Deposit Money Banks operating in Nigeria have been directed to comply with the Supreme Court ruling of March 3, 2023.

“Accordingly, the CBN met with the Bankers’ Committee and has directed that the old N200, N500 and N1000 banknotes remain legal tender alongside the redesigned banknotes till December 31, 2023.

Consequently, all concerned are directed to conform accordingly.”
The Supreme Court had on March 3 ordered that old N200, N500 and N1000 notes remain legal tender till December 31, 2023.
The apex court gave the order after a suit filed by 16 states of the Federation to challenge the legality or otherwise of the naira redesign policy.

The plaintiff states had prayed the Court to void and set aside the policy on the ground that it is inflicting hardships on innocent Nigerians.

The Supreme Court’s interim order on the policy in February was flouted by the President and the CBN Governor Godwin Emefiele.

On March 3, the Supreme Court ordered that N200, N500 and N1000 notes remain legal tender until December 31, 2023.

But the Presidency, CBN and the AGF kept mum, throwing Nigerians into confusion. The President and the CBN Governor had insisted that the old bank notes of 1000 and 500 had ceased to be valid despite the Supreme Court’s order.

However, the Presidency broke its silence on Monday, saying the CBN acted alone, as it never directed it (CBN) and the AGF not to obey the order of the apex court.

Earlier on Monday, the President of Nigerian Bar Association (NBA), Yakubu Maikyau (SAN), had called called on President Muhammadu Buhari to immediately direct compliance with the terms of the orders made by the Supreme Court in its March 3, 2023 judgement in respect of the Naira redesign policy.
In a statement on Monday, the NBA President, Yakubu Maikyau, a Senior Advocate of Nigeria (SAN), urged President Buhari to restore the old naira notes as legal tender as ordered by the Supreme Court, to quell the hardship Nigerians have been subjected to due to the poor implementation of the policy by the Central Bank of Nigeria (CBN).
He noted that the apex court did not mince words on the negative impact of the president’s directives which deprived owners of the withdrawn old naira notes of their right to the ownership and use of the funds without an enabling law. This, he said, “brought hardship to Nigerians and the situation has not abated.”
The NBA President expressed concern that the “implementation of the policy in the manner it was being carried out will bring more loss, stifle economic activities, cause panic and generally result in more hardship for the same Nigerians the policy is meant to serve.”
“We wish to note at this point that there is no sensitization, or if there is, it is not widespread, as to what Nigerians can do with the old bank notes after the 13 January 2023 even though the law has made clear provisions for what shall be done by the CBN upon demand. 
 
The NBA President further noted: “Incidentally, the CBN’s cash swap program which took effect on 23 January 2023 has not addressed the concerns of Nigerians post- 31 January 2023. While appreciating the actions of the CBN which are based on the enabling law, it is important to adhere strictly to the spirit and intent of the law as we must not deploy the laws made to serve the course of Nigerians to become an instrument to inflict harm, loss, injury and stifle economic activities. “This would go against the spirit of the policy and penalise Nigerians who have legitimate reasons to transact in cash without affording them the education, infrastructure or opportunity to do otherwise. Similarly, Nigerians must be offered the opportunity to demand the CBN to redeem any cash in their possession post 31 January 2023.”
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