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Akinwande Soji-Ojo
The Supreme Court, on Wednesday, ordered that the old N200, N500, N1000 notes should continue to co-exist with the new naira notes till further notice
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 seven-man panel led by Justice Inyang Okoro gave the order following an application by the Federal Government asking the court to grant an extension of time for old naira notes to remain in circulation as a legal tender.
The Federal Government also prayed the court to lift its March 3 order, noting that the extension of time is necessary as it has not been able to print the volume of new notes that would enable a phase out of the old currency before the December 31 deadline.
In the fresh application brought by the Attorney-General of the Federation (AGF) and Minister of Justice, Lateef Fagbemi (SAN), the Federal Government further explained that should the Supreme Court decline its request to extend the period of circulation of old notes, the country 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 under the former Central Bank of Nigeria (CBN) Governor, Godwin Emefiele.
It asked the court to allow the old notes to be in use with the new notes until after it consults with stakeholders, noting 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 31deadline.
In a unanimous decision, the seven-man panel allowed Fagbemi’s application.
The apex court had on March 3, restrained the CBN from giving effect to the deadline on the use of old notes.
However, the CBN on November 14, extended the validity of the old N200, N500 and N1,000 notes indefinitely.
The CBN had introduced the redesigned N200, N500 and N1,000 denominations in October 2022 and certain deadlines were set for the old notes of these denominations to cease as legal tenders.