Explainer: What Supreme Court’s ruling on Naira notes deadline means for Nigerians
On Wednesday, February 8, 2023, the Supreme Court of Nigeria restrained the Federal Government from implementing the February 10 Deadline of the old N200, N500 and N1000 naira notes to stop being legal tender.
The judgement came after three northern states, Kaduna, Kogi and Zamfara filed a motion ex-parte on February 3rd, asking the court to stop the Central Bank of Nigeria (CBN) naira redesign policy.
The CBN had initially announced that the old notes would become illegal tenders on January 31. This forced many Nigerians to deposit the old notes in the banks hoping to get the new notes. Due to short supply, however, many Nigerians have been unable to get adequate new notes to meet their daily needs. This has caused long queues at ATM terminals and increased the charges for POS cash withdrawals to 100 per cent and above.
In reaction, the CBN further extended the deadline by 10 days and asked banks to pay the new naira notes over the counter. The apex court also said banks will continue to receive the old notes Despite this, the difficulty in getting cash has not reduced as Nigerians complain daily about how it affects their lives and businesses.
The agitation has created a tensed atmosphere which has resulted in protests daily in some parts of the country forcing banks and bankers to take measures to prevent themselves from attack.
Justice John Okoro-led Supreme Court panel, in a unanimous ruling, granted an interim injunction restraining the federal government, CBN, and commercial banks from implementing the February 10, deadline for the old notes being a legal tender.
The court asked them not to continue with the deadline pending the determination of a notice on notice in respect of the issue on February 15.
Two days earlier, four political parties obtained a judgement from the Federal High Court in Abuja stopping the federal government, CBN and commercial banks from extending the February 10 deadline.
What does this mean for Nigerians?
With the Supreme Court’s judgement, the old naira notes will continue to be legal tenders beyond the February 10 deadline earlier issued by the CBN. However, it remains unclear if banks will resume issuing the old notes.
With the Buhari’s government’s notorious record for disobeying court orders, some Nigerians have expressed fears that the Supreme Court judgements may not be obeyed.
