The apex court ruled that both old and new notes should continue to remain legal tender until the Federal Government put a process in place for its replacement or redesign after due consultation with relevant stakeholders
The Supreme Court had in March 2023, extended the phase out of the old notes till December 31, 2023.
A seven-man panel of Justices of the apex court, led by Justice Inyang Okoro, gave the order following an application filed by the Federal Government of Nigeria, seeking an extension of the time frame for the circulation of old currency.
The government argued that it had not been able to print a sufficient volume of new notes to facilitate the phase-out of the old currency before the December 31 deadline set by the court in a previous order.
In the fresh application brought before the court, the Attorney-General of the Federation (AGF), Lateef Fagbemi, SAN, argued that should the apex court decline its request to extend the period of circulation of old notes, Nigeria stands the risk of descending into another national, economic and financial crisis as witnessed in the first quarter of the year when the naira redesign policy was being implemented by CBN under Godwin Emefiele as governor.
The AGF prayed the court to allow the old notes to be in use with the new notes until after it consults with stakeholders, pointing out that the economy may be in jeopardy once again because some Nigerians have started hoarding the old and new naira notes ahead of the December 31st timeline.
In a unanimous ruling, the seven man panel allowed Fagbemi’s application.
The CBN announced recently that the old N200, N500, and N1,000 notes would remain legal tender indefinitely.