Days after the Supreme Court annulled the Central Bank of Nigeria (CBN)’s naira redesign policy, ordering the federal government to allow both the new and old N200, N500 and N1,000 notes to co-exist till December 31, banks are yet to start dispensing the old notes.
The apex court had on Friday described the policy as an affront to the 1999 Constitution, in a suit instituted by 16 states against the federal government. In its judgment, the seven-man panel led by Justice John Inyang Okoro held that the unlawful use of executive powers by the President inflicted unprecedented economic hardship on the citizens by denying them ownership of and access to their money.
Economic activities significantly slowed down due to currency scarcity, following the implementation of the naira redesign policy by the central bank. In a move to ease the suffering orchestrated by the policy, President Muhammadu Buhari had on February 16, in his national broadcast, approved the use of only the old N200 note alongside the redesigned notes.
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
But it was significantly insufficient, as long queues continue to mark bank premises across the country.
The federal government said the CBN had its backing to implement the policy aimed at curtailing money laundering, terrorism financing, and vote-buying among other ills. The policy, which was announced ahead of the 2023 general elections, instigated public outcry.
Both the federal government and the CBN are yet to respond to the Supreme Court’s judgment, which was expected to end the months-long chaos. Bank executives say they have not received any directive from the apex bank regarding the judgment, sparking fear that the federal government may once again disobey the Supreme Court.
There are calls from many quarters, asking Buhari to obey the judgment and ease the suffering of Nigerians. The Socio-Economic Right and Accountability Project (SERAP), had on Monday urged the President to disclose details of the measures his government is taking to immediately & effectively obey the Supreme Court decision.
The rights group asked Buhari to “publicly instruct the CBN to immediately and effectively implement the Supreme Court decision ordering an end to the cash withdrawal limits imposed by banks because such restrictions violate citizens’ right to freely use their property.”
“The public should not be kept in the dark on what his government and the CBN are doing to implement the decision. Widely publishing the implementation measures would also improve accountability of state officials and public confidence in the rule of law and Nigeria’s democracy,” SERAP said.
Buhari’s administration is well known for disobeying court orders, a habit it displayed after the Supreme Court on February 8, ordered that the old naira notes be allowed to co-circulate with the new notes until the suit filed by the 16 states is determined.
SERAP said it is concerned about the persistent disobedience of court orders by his government, and the apparent lack of respect for constitutional and international rule of law obligations.
“Nigerians are entitled to the details of the level of compliance by his government and the CBN with the Supreme Court decision as a matter of transparency, justice and the rule of law,” It said.