At last, the Central Bank of Nigeria (CBN) has again recognised the old N200, 500 and 1000 notes as legal tender till December 31, 2023.
The CBN gave the directive at a Bankers’ Committee meeting held on Sunday, according to a statement by the acting Director, CBN Corporate Communications, Isa AbdulMumin, on Monday.
This is coming hours after Anambra State Governor, Professor Chukwuma Soludo, also a former CBN Governor broke the news that the apex has directed commercial banks to receive and dispense the use of old Naira notes.
The Presidency Monday evening said the CBN had no reason not to comply with the ruling of the Supreme Court on the Naira redesign policy.
Similarly, Nigeria Labour Congress on Monday gave Federal Government and CBN a seven-day ultimatum to comply with the Apex court’s order, directing workers to stay at home till further notice if the order is heeded.
More than one week after Supreme Court had handed down the order, but the AGF and the CBN have kept mum over the verdict. Their silence has emboldened Nigerians and businesses to reject the old notes as legal tender.
Meanwhile, some state governments, which sued the Federal Government on the naira redesign policy, have given the Attorney-General of the Federation and Minister of Justice, Abubakar Malami, SAN, and the Central Bank of Nigeria Governor, Godwin Emefiele, till Tuesday to comply with the order of the Supreme Court on the currency.
The state governments threatened to file contempt charges against the two top officials on Tuesday should they fail to obey the apex court’s order that the old N1,000, N500 and N200 should be in circulation alongside the new notes till December 31, 2023.
Presidency reacts
Earlier on Monday, the Presidency said the CBN does not need a directive from President Muhammadu Buhari to comply with the Supreme Court order to extend validity of old naira notes till December 31, 2023.
“It is therefore wide off the mark to blame the President for the current controversy over the cash scarcity, despite the Supreme Court judgement. The CBN has no reason not to comply with court orders on the excuse of waiting for directives from the President,” Presidential spokesman Garba Shehu said in a statement.
Shehu distanced Buhari from the scarcity of cash and the non-compliance with the Supreme Court order.
“The President is not a micromanager and will not, therefore, stop the Attorney General and the CBN Governor from performing the details of their duties in accordance with the law,” Shehu said.
“In any case, it is debatable at this time if there is proof of willful denial by the two of them on the orders of the apex court.”
Shehu insisted that Buhari’s directive after the meeting of the Council of State is that the CBN must make all needed cash available for circulation.
“It is an established fact that the President is an absolute respecter of judicial process and the authority of the courts,” Shehu said.
“He has done nothing in the last eight or so years to act in any way to obstruct the administration of justice, cause lack of confidence in the administration of justice, or otherwise interfere or corrupt the courts and there is no reason whatsoever that he should do so now when he is getting ready to leave office.”
He said the directive of the President, following the meeting of the Council of State, is that the Bank must make available for circulation all the money that is needed and nothing has happened to change the position.
Mr Garba described the negative campaign and personalised attacks against the President by the opposition and all manner of commentators as unfair and unjust, as no court order at any level has been issued or directed at him.
CBN directs banks
But the apex bank in a statement entitled, “Old N200, N500, and N1,000 banknotes Remain Legal Tender – CBN,’’ said the directive was in compliance with Buhari’s administration obedience to court orders.
The statement read, “In compliance with the established tradition of obedience to court orders and sustenance of the Rule of Law Principle that characterised the government of President Muhammad Buhari, and by extension, the operations of the Central Bank of Nigeria, as a regulator, Deposit Money Banks operating in Nigeria have been directed to comply with the Supreme Court ruling of March 3, 2023.
“Accordingly, the CBN met with the Bankers’ Committee and has directed that the old N200, N500 and N1000 banknotes remain legal tender alongside the redesigned banknotes till December 31, 2023.
‘‘Consequently, all concerned are directed to conform accordingly.”
Supreme Court’s ruling
The apex court had ordered that the old naira notes be allowed to circulate side by side the new notes until December 31, 2023.
A seven-man panel of the Supreme Court led by Justice John Okoro had granted interim injunction asking CBN to stay action on the old notes pending the hearing of a substantive suit.
Other justices who sat on the case were Emmanuel Agim, Amina Augie, Mohammed Garba, Ibrahim Saulawa, Adamu Jauro and Tijanni Abubakar.
In the judgment delivered by Justice Agim, the apex court held that Buhari breached the constitution in the manner he issued directives for the redesigning of the naira.
On the disobedience of the Supreme Court’s earlier order on the new notes, Justice Agim said Buhari’s broadcast of February 16, 2023 that only the N200 note should remain legal tender made the country’s democracy look like a mere pretension.
“Let me consider the issue of the President’s disobedience of the 8-2-2023 interim order that the new and old versions of naira notes continue to circulate as legal tender until the determination of the pending application for interlocutory injunction. It is not in dispute that the 1st defendant refused to obey the said order.
“The President’s 16-2-2023 national broadcast reproduced here in pages 27-31 demonstrates this disobedience. In disobedience of the order, he directed that only the old N200 naira notes be re-circulated.
‘‘Interestingly, there is nothing to show the implementation of even that directive. I agree with the 9th plaintiff that the 1st defendant is not entitled to be heard by this court when it has effused to respect the authority of this court and the authority of law from which the authority of the President and the government of Nigeria derives.
“The rule of law upon which our democratic governance is founded becomes illusory if the President of the country or any authority or person refuses to obey the orders of courts.
‘‘The disobedience of orders of courts by the President in a constitutional democracy as ours is a sign of the failure of the constitution and that democratic governance has become a mere pretension and is now replaced by autocracy or dictatorship,” Justice Agim ruled.
