The old N200, N500, and N1000 notes are to coexist with the new ones until further notice, according to an order issued by the Supreme Court on Wednesday.
The highest court decided that until the Federal Government established a procedure for replacing or redesigning notes after properly consulting with pertinent parties, both new and old notes should be accepted as lawful money.
The Central Bank of Nigeria (CBN) declared in mid-November that the old N200, N500, and N1,000 notes will continue to be accepted as legal tender indefinitely.
Subsequently, the Federal Government implored the Supreme Court to extend the period of time that old naira notes could be used as lawful money.
In a request made by Lateef Fagbemi, the Attorney-General of the Federation, the Federal Government requested that the Supreme Court overturn its ruling on March 3 mandating that the old naira notes be kept with the new notes until December 31, 2023.
The Federal Government clarified that, should the Supreme Court reject its request to prolong the period of circulation of old notes, the nation could face a new national, economic, and financial crisis, similar to the one that occurred in the first quarter of this year during the implementation of the naira redesign policy by former Central Bank Governor Godwin Emefiele.
Noting that some Nigerians have begun hoarding the old and new naira notes ahead of the December 31 deadline, it requested that the court permit the old notes to be used with the new notes until after it has consulted with stakeholders. This might put the economy in danger once more.
More to come.
