Updated: Supreme Court Suspends Old Naira Deadline, Favours Northern States

The Supreme Court ruled in favour of three Northern States, Kaduna, Kogi and Zamfara on Wednesday, 8 February 2023, after they requested that the deadline to phase out old Naira notes be suspended. 

Prime Business Africa gathered that the Northern states had filed a lawsuit against the Central Bank of Nigeria (CBN) and the Federal Government to stop the implementation of the deadline to phase out the old Naira notes.

As represented in this case, the only time the Supreme Court can adjudicate on a matter as court of first instance is when there is dispute between states and Federal Government. The move by the three northern states has, therefore, created a major legal fireworks in the currency redesign matter, after four opposition parties secured court injunction to force the CBN stay on its February 10 deadline.

READ: Court Stops CBN From Extending Old Naira Use Beyond February 10 Deadline

Recall that the central bank had disclosed that the old Naira will be phased out on Friday, 10 February 2023, after the CBN governor, Godwin Emefiele, extended the deadline from 31 January 2023.

There has been disagreement over the deadline amid the scarcity of new Naira notes, which has led to Nigerians storming various banks and destroying their properties as they are unable to access their funds. 

In a bid to prevent the deadline from taking effect, the governments in Kaduna, Kogi and Zamfara approached the Supreme Court, praying that the 10 February 2023 timeframe be set aside. 

They told the seven-man panel of the Supreme Court led by Justice John Okoro that their residents are suffering from the Naira redesign policy of the CBN. 

According to the three states, their residents have not had access to their funds in banks despite depositing their money at the Deposit Money Banks (DMB) as instructed by the central bank. 

Speaking through their lawyer, AbdulHakeem Mustapha (SAN), this has caused hardship for their people and made it impossible for them to go on with their daily activities. 

Mustapha said the 10 days is insufficient for the people of the states that filed the lawsuit, as the banks are short on cash to disburse to the public. 

“Unless this Honourable Court intervenes, the Government and people of Kaduna, Kogi and Zamfara State will continue to go through a lot of hardship and would ultimately suffer great loss as a result of the insufficient and unreasonable time within which the Federal Government is embarking on the ongoing currency redesign policy.” 

The Supreme Court granted their prayer and interim injunction which was obtained through an ex-parte motion. According to the court, the old Naira remains legal until the judges give a final order on the suit against the CBN and FG on February 15, 2023.

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