Buhari’s ban on old N500 and N1,000 notes is being challenged by 10 States at the Supreme Court

The plaintiffs claimed that the President’s order to extend the usefulness of old N200 notes for 60 days as well as his prohibition on old N500 and N1,000 notes were “unconstitutional overreach and assumption of judicial jurisdiction.”

President Muhammadu Buhari’s announcement to prohibit the old N500 and N1,000 notes has been challenged by ten states in the Supreme Court.

In their lawsuit, filed on Friday by their attorney A.J. Owonikoko (SAN), the governors are asking the supreme court to declare the President’s orders from his broadcast on Thursday to be unconstitutional.

Attorneys General (AGs) of Kaduna, Kogi, Zamfara, Ondo, Ekiti, Katsina, Ogun, Cross River, Sokoto, and Lagos states are the plaintiffs in the lawsuit. Attorney General of the Federation Abubakar Malami (SAN) and the AGs of Bayelsa and Edo states are the defendants.

The plaintiffs claimed in a dozen grounds of application that Buhari’s directives, including his ban on old N500 and N1,000 notes and his extension of the validity of old N200 notes for 60 days, were a “unconstitutional overreach and usurpation of the judicial power” of the Supreme Court because the case was already before the court.

The petitioners’ attorney referred to Section 232(1), Section 6(6)(b), and Section 287(1) of the 1999 Constitution as amended, which guarantee that all people and authorities must obey the Supreme Court’s rulings.

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The relief stated, in part, “Contrary to the Honourable Court’s order, the substantive 1st defendant, through the President of the Federation, and its agent, the Central Bank of Nigeria, have repeatedly released statements that the old Naira Notes are no longer legal tender, thus resulting in misleading the general public on what the status quo to be complied with, pendente lite.”

Following complaints from many Nigerians, the Central Bank of Nigeria (CBN) extended the deadline for the swap of old N200, N500, and N1,000 from January 31 to February 10; however, the Supreme Court ruled that the Federal Government, the CBN, and commercial banks must suspend the February 10 deadline pending the outcome of a notice regarding the issue on February 22. This decision followed an initial lawsuit filed by the 10 states.

To coexist with the new N200, N500, and N1,000 banknotes for 60 days—by April 10, 2023—the President, in a nationwide broadcast on Thursday, instructed the apex bank to put old N200 notes into circulation. He added that the previous N500 and N1,000 banknotes are no longer accepted as legal money in Nigeria.

The President’s instruction has received a flurry of responses and harsh condemnation, including from governors of his party, the All Progressives Congress (APC).

Governors Nasir El-Rufai of Kaduna, Abubakar Badaru of Jigawa, Rotimi Akeredolu of Ondo, and Umar Ganduje of Kano, as well as Speaker of the House of Representatives Femi Gbajabiamila and Minister of State for Labour and Employment Festus Keyamo, have openly criticised and faulted the President’s directive, claiming that it lacks justification because the case is still pending

Prominent Senior Attorneys in Nigeria like Mike Ozekhome and Femi Falana have both criticised the President’s action, claiming that he is powerless to overturn the ruling of the highest court in the nation.