Nigeria’s Supreme Court has temporarily halted any plans to ban the use of the old naira notes across the country. The ruling was issued on Wednesday morning by a seven-member panel led by Justice John Okoro, halting an exparte application brought by three northern states of Kaduna, Kogi and Zamfara. The states dragged the Federal Government to the Supreme Court over the scarcity of old and new naira notes due to the Central Bank of Nigeria (CBN)’s naira redesign policy.
More details on the ruling: Justice Okoro also adjourned the matter until February 15 for a hearing of the main suit.
In his ruling, the Justice revealed that after careful consideration of the motion exparte, this application is granted as prayed. “An order of Interim Injunction restraining the federal government through the Central Bank of Nigeria (CBN) or the commercial banks from suspending or determining or ending on Feb. 10, the time frame with which the now older version of the 200, 500, and 1,000 denomination of the naira may no longer be legal tender pending the hearing and determination of their motion on notice for interlocutory injunction.”
The backstory: The three states had specifically applied for an order of Interim Injunction restraining the Federal Government and the Central Bank of Nigeria (CBN) from determining February 10 as the deadline for the circulation and use of the old N200, N500, and N1000 notes; pending the hearing and determination of their motion on notice for interlocutory injunction.
Counsel to the applicants, Mr. A. I. Mustapha, SAN, urged the apex court to grant the application in the interest of justice and the well-being of Nigeria, adding that the policy of the government has led to an “excruciating situation that is almost leading to anarchy in the land “. He also revealed that the Central Bank of Nigeria’s (CBN) statistics revealed the Nigerians without Bank accounts at over 60 percent, adding that they can’t even access their monies from the bank as a result of the policy.
What you should know: The Federal Capital Territory (FCT) High Court had earlier barred the Central Bank of Nigeria (CBN) and President Muhammadu Buhari and 27 commercial banks from suspending or interfering with the currency redesign terminal date of February 10 or issuing any directive contrary to the said date.
13 political parties out of the 18 political parties in Nigeria have threatened to withdraw from participating in the February 25 and March 11, 2023, general elections, if the Central Bank of Nigeria (CBN) extends the February 10 deadline for the naira swap. Kaduna, Zamfara, and Kogi States dragged the Federal Government to Supreme Court over the scarcity of old and new Naira notes due to the Central Bank of Nigeria (CBN)’s naira redesign policy. The state governments who said they are worried by the effects the CBN naira redesign policy is having on the residents of their states, are seeking a restraining order by the Supreme Court to compel the government and CBN from implementing the policy.
