CBN okays use of outdated Naira notes ten days after courtroom ruling

CBN okays use of outdated Naira notes ten days after courtroom ruling

Ten days after Nigeria’s Supreme Courtroom dominated that the N200, N500 and N1,000 notes would stay authorized tender till December 31, 2023, the CBN has acknowledged the courtroom’s ruling. Final week’s verdict was emphatic, mentioning that the foreign money redesign coverage introduced final yr was unfair and that Nigerians didn’t obtain honest discover. Regardless of the Supreme Courtroom’s strong judgment, which partly chided President Muhammadu Buhari, lengthy queues might nonetheless be seen at Nigeria’s main banks all week. 

CBN okays use of old Naira notes

Many of the uncertainty was brought on by the Central Financial institution and the Federal Authorities conserving quiet on the courtroom judgment. There was no indication that the courtroom order could be obeyed, and main banks refused to obtain or challenge the outdated notes. A TechCabal report from last week quotes a financial institution worker as saying, “The banks can not act on the Supreme Courtroom ruling as a result of the Central Financial institution, an impartial physique, controls us. The Central Financial institution has not directed us to align with the Supreme Courtroom’s resolution, so enterprise will proceed as normal.”

At this time, the Central Financial institution confirmed that it could adjust to the courtroom’s resolution and lengthen the validity of the outdated notes to December 31, 2023 whereas placing the brand new notes into circulation. However the assertion got here after a the Federal Authorities implied that it didn’t perceive why the Federal Authorities and the Lawyer Basic selected to not obey the courtroom’s ruling. Whereas all that was happening, State governments started the week with media bites telling individuals to simply accept and spend the outdated notes.

The governor of Anambra state, Chukwuma Soludo, additionally a former Central Financial institution Governor, stated that the CBN had determined to obey the courtroom’s order on Monday morning. On the time of his tweet, the CBN didn’t touch upon the judgment. Nonetheless, Soludo tweeted, “Residents of Anambra are due to this fact suggested to freely settle for and transact their companies with the outdated foreign money notes (N200; N500; and N1,000) in addition to the brand new notes. Residents ought to report any financial institution that refuses to simply accept deposits of the outdated notes.” The Lagos state governor, Babajide Sanwo-Olu, tweeted on Monday morning, “Kindly word that business banks have been directed to simply accept the outdated N500 and N1,000 notes as deposits and pay them out for withdrawals.”

Seven after the tweets from state governors–17 of whom sued the Federal Authorities to courtroom over the Naira redesign coverage within the first place–the CBN launched a press release. A part of it stated, “Accordingly, the CBN met with the Bankers’ Committee and has directed that the outdated N200, N500 and N1000 banknotes stay authorized tender alongside the redesigned banknotes until December 31, 2023. Consequently, all involved are directed to evolve accordingly.”

Many Nigerians shall be relieved on the CBN’s acknowledgment of the courtroom judgment and its directive to banks to honor the outdated notes. There are hopes that it’s going to finish the lengthy financial institution queues individuals have endured for the final eight weeks. In the end, we’re nonetheless left questioning concerning the CBN’s insistence on a coverage that left the nation in discomfort and subjected residents to inhumane queues. As you go round this week, lastly capable of entry the Naira, the query on everybody’s lips shall be, “what was the purpose of this coverage?”

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