Supreme Court Grants Extension: Old Naira Notes to Remain Legal Tender Until End of Year

The Federal Government’s new naira design policy has been declared invalid by the Supreme Court because it was implemented without proper consultation and in violation of the Constitution.

The supreme court then ruled that the old and new Nigerian naira notes should be used together until December 31, 2023.

The court ruled that the three-month deadline violated the Central Bank of Nigeria Act and was therefore unconstitutional.

Furthermore, the Supreme Court argued that Major General Muhammadu Buhari (retd.), the President, when he issued a directive to stop issuing the old N1,000, N500, and N200 notes on February 10, 2023, he overstepped the authority of the CBN.

The defendants’ argument that the court lacked jurisdiction to decide the case was taken into consideration by the court as it rendered its judgment.

Justice Agim stated that the Nigerian president’s and government’s actions are federation-wide.

The court decided that the dispute was between the states and the federation’s government and fell under its original jurisdiction. It also decided that the federation’s government should have had enough time to talk to the states in order to keep government business and operations running smoothly.

It disproved the claim that the CBN should be sued, asserting that the President’s decision to redesign the naira, release the new notes into circulation, and withdraw the old notes without consulting Nigerians through the council of states and the National Economic Council is the issue that is being challenged.

The court ruled that the CBN does not need to be a party to the lawsuit because the CBN did not have the authority to implement the policy without the president’s direction and the lawsuit does not target the banks or the CBN.