CBN Finally Addresses Supreme Court Order Publicly, Succumbs To Pressure On Old Naira

The Godwin Emefiele-led Central Bank of Nigeria (CBN) has succumbed to the Supreme Court order which states that old N500 and N1,000 remains legal for 10 months.

In a statement released by the central bank’s Director of Communication, Isa Abdulmumin, it was officially disclosed to the public that the Deposit Money Banks in Nigeria have been directed to comply with the Supreme Court ruling of March 3, 2023.

Prime Business Africa previously reported that the Supreme Court ruled the old Naira notes have not lost their validity after the apex bank phased them out following the deadline of 10 February 2023. 

The Supreme Court ruled that the old currencies remain legal tender until 31 December 2023, as it ruled that the central bank’s Naira redesign policy was a breach of the 1999 constitution. 

Since the apex court made the judgement on 3 March 2023, both the financial regulator and the Federal Government have refused to address the judgement publicly. 

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This has made most Nigerians and businesses, including cash-driven trades and the filling stations, to reject the old banknotes, as many are unsure if the CBN and the government would adhere to the Supreme Court order or give different directives as they have done in the past. 

However, on Monday evening, 13 March 2023, the central bank announced that it will obey the Supreme Court order, adding that CBN has directed the bankers’ committee (a group of bank chief executive officers) to accept old Naira notes.

“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 statement by the central bank reads.