The Supreme Court of Nigeria has ruled – and the citizens must respect that decision: “The Supreme Court Wednesday ordered the Central Bank of Nigeria (CBN) not to end the use of old naira notes on 10 February.” Why many may not like the pause on the new Naira policy, there is no reason to cause problems. If you shift the deadline past the election day, the policy has no value. If you allow the old Naira notes to be used past the election day, the policy has no value.
Yet, it is no more about the election, it is about the institutions in the nation. I do not like the ruling since it will certainly bring back money politics, but I also must understand that anytime goes in Nigeria.
Can we get the Supreme Court to rule to make exchange rate $1 to N200 now that it can overrule the apex bank, entrusted with the nation’s monetary policy. There is a precedent to that call: the court ruled on the pricing of electricity, freezing the rates which had attracted many foreign investors into the industry.
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.
When it finalized its approved rates, since then, no investor wants to touch the Nigerian electricity sector because doing so is largely wasting money at the distribution phase. Possibly, had the court left the pre-deal rates, more investments would have arrived. Today, most investors in Discos abandoned the plan because there is nothing there. Those new rates remain a big challenge why the sector is not attracting adequate funding.
We respect the rule of law and the power of the courts. But Nigeria is getting into a new territory where pricing, monetary policies, etc are now largely set by the Court. We have to watch the implications. Sure – we can get our electricity from the courts because they can rule “let there be electricity in all homes for free”. Waiting for that ruling soon.
The Supreme Court Wednesday ordered the Central Bank of Nigeria (CBN) not to end the use of old naira notes on 10 February.
The News Agency of Nigeria (NAN) reports that a seven-member panel of the court, led by John Okoro, gave the order of interim injunction amid acute scarcity of newly redesigned N200, N500, and N1,000 currency notes.
The court gave the order temporarily, cancelling the CBN’s 10 February deadline to end the validity of the old versions of the banknotes based on an ex parte application filed by three northern states being controlled by the All Progressives Congress (APC).
The three applicant states are – Kaduna, Kogi and Zamfara.
Comment on Feed
Comment 1: Once upon a time, we believed that the judges’ wigs symbolized wisdom, but now no wisdom has been shown in this ruling. Perhaps the courts have the plan to rule on interest rates soon. The judiciary now is somewhat laughable!
Comment 2: Are we saying the policy was about the election in the first place? As far as i am concerned, we still need the courts in this part of the world to act on some needed debates. If the framework on electricity was properly done, i believe investors will come to the party. The Apex court is the sole defender of the ordinary man, and we appreciate the judgment.
My Response: “If the framework on electricity was properly done, i believe investors will come to the party.” – they are waiting for 7 years. You told me that one shoe is N400, I invest. After my investment, your court says it is now N150. I will abandon the shoe. And they did and everyone is using generators. Waiting for the court to rule on Interest Rate to be set at 0%!
Comment 3: As much as I respect the institution of the CBN, I think the Supreme Court stands to protect the interest of the common Nigerian people. If the CBN makes a policy the negatively impact on the people, is it not right the court comes in. The redesign of the Naira may have the good intentions of checkmating vote buying but if the country runs into anarchy before even Election Day then what has been achieved. People are really suffering. I mean major suffering
My Response: ” I think the Supreme Court stands to protect the interest of the common Nigerian people.” – that is a problem. The apex court is primarily to interpret the laws of the nation as written by the parliament. The goal is not to rule on emotions and feelings. The court destroyed the electricity sector when it reversed the rates the government agreed with investors in our Disco. Today, because the court ruled, no one wants to put in more money.
Sure, it can rule on the exchange rate tomorrow and fix N200 to $1 since we’re suffering due to exchange rate issues. Indeed, it can rule on the vacation days of a CBN guard.
What is the CBN for if the Supreme Court will make the calls. Today, NERC, the electricity regulator, is irrelevant because it is unable to fix rates because the court froze it.
Do you know why you do not have water in your city? A court ruled that water rates cannot be increased and in some cities in Nigeria, the rates have not changed in 20 years. Get me right, I respect the rule of law. But that you have power does not mean you must fight every war. Our courts are not helping on these issues.
Comment 3R: Ndubuisi Ekekwe well then the law stands to protect the people. The really on ground is no longer emotional and sentimental. It is pure anarchy. The CBN should have done full risk assessment before putting up the policy. People are hurting. Like they said ‘Rome is the people’ CBN has the now to prove that the court decision was wrong
My Response: I am not writing about this particular case. I am focusing on the whole concept that a Court will be ruling on this type of issue. This is not about a good or bad policy on the people, my focus is why the Court becomes the only agency since it can wage legal wars on any agency. It froze NERC on its electricity regulation by fixing prices people pay for light. Think beyond this current rule where we’re going. Can it rule also on exchange rate and interest rate? Yes, because we’re suffering due to them.
Comment 4: The Judgement has been hailed by many! The untold hardship that CBN and its political bandwagon and associates wanted to achieve has been halted and We Move till after the election before the hearing of the court case will be open. Hopefully, both the old notes and new notes will be released by the banks so that normalcy will return to the country. Whoever then wanted to cry because of vote buying should do so of their own volition.
My Response: We are suffering due to high interest rates in the banking sector. Can it rule and make it 0%?
Comment4A: High interest is based on risk and market forces.
The New notes debacle is based on incompetence and hubris.
My Response: It is a CBN policy and could be used to influence the market forces, pushing the interest rate to a new level. Interest rate is not set in isolation. You bring other mechanisms at play. My issue is not this current ruling, it is the idea that a Court can rule on pricing of electricity, water rates, and things you would not have expected the Court to decide.
---
Register for Tekedia Mini-MBA (Feb 10 - May 3, 2025), and join Prof Ndubuisi Ekekwe and our global faculty; click here.
Corruption thrives at scale only if majority are corrupt, and that is the case of Nigeria. On this same app, the supposed educated class will be here, telling us how the naira notes redesign and restrictions won’t stop politicians from votes buying. How true? If it won’t affect them, why are they running up and down to get the use of old notes extended? Of course it’s only those who still have bags of old notes will be fighting for extension, and most of ordinary citizens don’t have such in their possession right now.
The ruling won’t make old notes more available, so how does it benefit ordinary people the same mafias claim they are fighting for? It’s a given that the cash scarcity will continue for the rest of February, so what happens if the ruling isn’t vacated before February 25? It means that the vultures who are still stuck with old notes will bring them out on 25th, then their lackeys will come here to cheer them, telling us how they know politics more than others. Nonsense.
The courts can now get involved in virtually everything in the land, so what stops the Supreme Court from extending Buhari’s tenure beyond May 29? At least INEC can shift the election to May, with crisis, one can run to court and argue for extension.
Hmmmmm
I laugh ? ? when they say they are fighting for the masses..we have been pillaged and plundered by kidnappers, gunmen, police brutality, lack of electricity, baad roads, internet fraud, inaccessible healthcare services, I could go on and on. Oh let’s I forget, asuu strike that affected majority of the same “masses”. What did they do then to help the masses?
Probably they were vacationing in Seychelles island ??. It’s election ? and they are back from vacation to help the masses??.
My fellow Nigerian, come 25 feb, go out and CLOSE UR EYES and vote. Ur fathers “IFAG” the redeemer, the complex/sophisticated system, the antidot to Nigerias problem is on the way.