Supreme Court Approves Indefinite Use of Both Old and New Banknotes

The Supreme Court has ruled that both the old and redesigned Naira banknotes will continue to be recognized as legal tender in the country, extending their validity beyond December 31.

 

The apex court, in a ruling by a seven-man panel led by Justice Inyang Okoro, on Wednesday, directed that the banknotes should continue circulating until the Federal Government decides after consulting with relevant stakeholders.

It made the order after hearing an application that was moved on behalf of the federal government by the Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi, SAN.

Recall that on March 3, the court nullified the ban imposed by President Muhammadu Buhari-led administration on the use of old N200, N500, and N1000 banknotes as valid legal tenders.

The court mandated the continued use of old Naira notes alongside the redesigned currencies until the end of the year.

Justice Emmanuel Agim, in the lead judgment presented and delivered, strongly criticized the Federal Government at the apex court.

The court condemned the FG for independently implementing the demonetization policy through the Central Bank of Nigeria (CBN) without seeking input from crucial entities such as the Council of States, the Federal Executive Council, the National Security Council, the National Economic Council, Civil Society Organizations, and other relevant stakeholders.

It held that the Federal Government failed to provide proper notice to all federating units before deciding to withdraw the old banknotes from circulation and introduce new ones.

The Supreme Court affirmed that the evidence presented indicated that the alleged notice on the monetary policy was conveyed solely through “mere press remarks” by the CBN Governor, Mr. Godwin Emefiele.

It held that such remarks did not qualify as “reasonable notice” to the states as envisaged under section 20(3) of the CBN Act.

the court invalidated President Buhari’s broadcast on February 16, where he directed that only the old N200 note would continue as legal tender until April 10.

President Buhari was accused of disobeying the interim order issued on February 8, directing the continued use of old

banknotes until the case’s resolution. The apex court emphasized that the President’s decision to proceed with the ban on old banknotes was detrimental to democratic governance.

The court asserted that due to the Federal Government’s disobedience to its order, the FG forfeited the right to be granted an audience before the court.

Following the end of the last administration, the government led by President Bola Tinubu reapplied to the Supreme Court, seeking an indefinite extension of its December 31 deadline.

Kanyi Daily recalls that Ogun State Governor, Dapo Abiodun,  said that Nigeria was on the brink of collapse when  Bola Tinubu assumed office.