Supreme Court extends old Naira notes validity beyond Dec. 31, to remain legal tender ‘till further notice’

Supreme Court, Wednesday, ruled on the application filed by the Federal Government, through its Attorney-General and Minister of Justice, Mr. Lateef Fagbemi SAN seeking an extension on the December 31 deadline for the continued use of the Old naira banknotes.

Mr Adegbite had approached the apex court, last Wednesday, November 22, with an application seeking the extend the validity of the old naira banknotes against the backdrop of an earlier deadline granted for the old currencies to cease to be legal tender in the country.

In the application, the AGF pleaded that the only way to save Nigerians from going through another financial crisis is to extend the validity of the old naira notes.

It would be recalled that Supreme Court had in March extended the validity of the old naira notes to December 31, 2023, amid the introduction of the new banknotes as part of the Central bank of Nigeria (CBN) new naira policy under its then Governor, Mr. Godwin Emefiele.

Mr. Fagbemi, said the government has not been able to print the volume of new notes that would enable it to phase out the old currency due to the economic crisis bedeviling the country.

“In between the time the order was made and now, there was a presidential election in the country which has led to a transition from the immediate-past government and the incumbent government which is just settling down.

The incumbent government has, however, directed the Central Bank to come up, by a way of policy direction, with how the naira redesign policy will be addressed in full compliance with the order of this honourable court.

“Whilst working on the policy direction and due to the economic crisis being witnessed by the government of the federation and other factors beyond its control, the government of the federation to date has not been able to print the new 200, 500 and 1000 naira notes in the equal proportion of the old 200, 500 and 1000 naira notes sought to be recalled as consultation with critical stakeholders is still on-going on how best to approach the redesign policy.

“People have been hoarding the new notes on the speculation that the 31 December deadline for the old notes to seize to be legal tender may not be met.

“To effectively stabilise the economy, the federal government is of the strong view that the old versions of 200, 500 and 1,000 notes should continue to be legal tender alongside the new versions.

“Following the deadline for the validity of the old 200, 500 and 1000 naira notes ordered by this honourable court will make the government of the federation push the country into another national, economic and financial crisis which this honourable court sought to prevent in the first instance by its judgment in the aforementioned suit.

“The only way to save the nation from both of the above situations is by the order of this honourable court to grant the prayers in this application,” Fagbemi prayed the apex court in his application.

Meanwhile, delivering its ruling on the application, Wednesday, he supreme Court granted permission for the old and new naira banknotes to continue to function as legal tender in Nigeria, until further notice and beyond December 31, 2023.

The apex court in a ruling on Wednesday by a seven-man panel led by Justice Inyang Okoro said, the banknotes should remain in circulation, pending when the Nigerian Government, after due consultation with relevant stakeholders, take a decision on the matter.

Last March 3, the apex court had vacated the order issued by the immediate past President, Muhammadu Buhari which banned use the old N200, N500 and N1000 banknotes as valid legal tenders. The court held that the old Naira notes should be used alongside the redesigned currencies, until the end of the year.

In its lead judgement that was prepared and delivered by Justice Emmanuel Agim, the apex court slammed the Federal Government for unilaterally introducing the demonitisation policy, through the Central Bank of Nigeria, CBN, without consulting the Council of States, the Federal Executive Council, the National Security Council, the National Economic Council, Civil Society Organisations and other relevant stakeholders.

The court held that the Nigerian government failed to give valid notice to all the federating units, before it decided to withdraw the old banknotes from circulation and introduce new ones.

The Supreme Court maintained that the evidence before it established that a purported notice on the monetary policy was through “mere press remarks” by the governor of CBN, Mr. Godwin Emefiele.

It held that such remarks did not qualify as “reasonable notice” to the states as envisaged under section 20(3) of the CBN Act.

Besides, the court invalidated the directive President Buhari gave in the broadcast he made on February 16, which allowed only the old N200 note to remain a legal tender till April 10.

While accusing President Buhari of disobeying the interim order it made on February 8, which directed that the old banknotes should remain in use till the determination of the case before it, the apex court stressed that the President, by going ahead to ban the old banknotes, acted in a way that was inimical to democratic governance.

According to the court, having acted in disobedience to its order, FG lost its right to be granted audience before it.