Supreme Court extends validity of old naira notes as legal tender till December 2023

By Business AM

The Supreme Court of Nigeria has ruled that the old N1000, N200 and N500 notes should remain legal tender and co-exist with the new notes until December 31, 2023.

The apex  court, in its judgment on the suit instituted by Kaduna, Kogi, and Zamfara  states against the federal government’s naira swap policy, faulted the entire policy of the CBN, saying the timing and implementation were defective.

The court’s seven-member panel held that the suit by the states was properly filed and dismissed all the objections raised by the Attorney General of the Federation (AGF), Bayelsa and Edo states.

Justice Emmanuel Agim, who delivered the lead judgment, faulted the directive issued by President Buhari to the CBN governor to limit access to cash and held that it was a violation of the right of the owners of such funds to their property.

Setting aside the cash limit directive given to banks by the CBN, the court expressed displeasure that President Muhammadu Buhari failed to obey its February 8 order for parties to allow the old notes to co-exist with the new ones. It described  the conduct as a disrespect of the constitution, the nation”s democracy, and a drift towards authoritarianism

The apex court also faulted the president for introducing the demonization policy, without due consultation with the Council of States, the Federal Executive Council, the civil society and other relevant stakeholders.