Supreme Court Restrains CBN From Banning Old Naira Notes

The Supreme Court has temporarily restrained the Central Bank of Nigeria (CBN) from implementing the deadline for the swapping of old to new Naira notes.

KanyiDaily recalls that the CBN had recently announced February 10 as the deadline for the old notes to be legal tender in the country.

The pandemonium over the February 10 deadline for the validity of three old naira notes assumed another dimension on Monday when three state governments begun legal battle.

Kaduna, Kogi and Zamfara governments dragged the Federal government before the Supreme Court, seeking an extension to the February 10 deadline by the CBN.

In a motion ex-parte filed before the supreme court, the three states are praying the court to grant an interim injunction stopping the CBN from ending the timeframe within which the old N200, N500, and N1000 notes will cease to be legal tender.

The plaintiffs said since the announcement of the policy, there has been an acute shortage in the supply of the new naira notes in their states.

They argued that citizens who have dutifully deposited their old currency notes have increasingly found it difficult, and sometimes, next to impossible to access the new notes for their daily activities.

Asides from the unavailability of the new notes, the plaintiffs also submitted that the notice period given by the federal government was inadequate.

Moving the application on Wednesday, Abdulhakeem Mustapha, counsel to the applicants, prayed the apex court to grant the application in the interest of justice and the wellbeing of Nigeria.

He said the policy of the government has led to an “excruciating situation that is almost leading to anarchy in the land”.

Mustapha also referred to statistics by the CBN which put the number of people who do not have bank accounts at over 60 percent.

The senior advocate added that Nigerians with bank accounts cannot even access their monies from the bank as a result of the policy.

He said most banks are already closing operations and unless the supreme court intervenes, the situation will lead to anarchy.

In its ruling on Wednesday, a seven-member panel led by Justice John Okoro restrained the federal government from banning the use of the old naira notes from February 10, 2023.

“An order of interim injunction restraining the federal government through the Central Bank of Nigeria (CBN) or the commercial banks from suspending or determining or ending on February 10, 2023, the timeframe with which the now older version of the 200, 500 and 1,000 denomination of the naira may no longer be legal tender pending the hearing and determination of their motion on notice for interlocutory injunction,” Okoro said.

The matter has been adjourned to February 15, 2023, for hearing of the main suit.

KanyiDaily recalls that the CBN Governor, Godwin Emefiele had revealed that banks will still accept the old Naira notes even after the expiration of the 10 February deadline.