Court is urged to halt CBN and Emefiele before the deadline for old naira notes 

The court is urged to halt CBN and Emefiele before the deadline for old naira notes. 

The Central Bank of Nigeria (CBN) and its Governor, Godwin Emefiele, have been encouraged, among other things, to delay enforcing their January 31 deadline for the old 200, 500, and 1000 naira notes. 

The request is a component of the relief demanded in a lawsuit filed by law professor Joshua Alobo, with the case number FHC/ABJ/CS/114/2023. 

Alobo further asks the court to make a statutory order requiring the CBN to delay the point at which “the old notes cease to be legal money” until three weeks later, when the redesignated notes will be widely accepted by commercial institutions. 

The CBN, Emefiele, and the Attorney General of the Federation are named as defendants in the lawsuit (AGF). 

In a supporting document, the plaintiff claimed that the CBN Governor had declared on October 26, 2022, that the apex bank would launch a new batch of redesigned N200, N500, and N1000 banknotes into the financial system. 

Although the CBN’s decision is intended to lower inflation and firmly establish a cashless society in order to combat money laundering and corruption, the majority of Nigerians, particularly the less fortunate ones, are yet to have access to the new naira notes that President Muhammadu Buhari unveiled on November 23, 2022, he claimed. 

Alobo claimed that as of January 25, he was still receiving the old notes on the counter and through the automatic teller machine. He further accused commercial banks of failing to make the new naira notes available to their customers at the ATM).

In the Federal Capital Territory of Abuja, big shopping malls have already stated that they will no longer accept old notes, and ATM withdrawals are now limited to N20,000 per day. 

Alobo claimed that while people who are politically exposed get paid with the new notes, the January 31 deadline for using the old notes “is discriminatory towards the rural inhabitants, the poor, and the less privileged persons in the country.” 

“The Central Bank of Nigeria’s cashless policy is an innovative and welcome development, but the majority of the people, who live in rural areas, lack access to banking and internet services.” The court battle over the Department of State Security’s (DSS) arrest of the Central Bank of Nigeria’s governor before the Federal High Court left the complete adoption of the redesigned Naira notes in doubt. 

“Anxiety in the nation regarding the implementation of the policy was necessary as a result of the legal action at the FCT High Court for the enforcement of the Governor of CBN’s fundamental rights.” On January 13, 2023, the Governor of the Central Bank of Nigeria visited the President in Aso Rock. Both print and electronic media did an excellent job of covering the reception. 

“The existing daily transaction limit of N20,000 is against the daily maximum of N100,000 set by the Central Bank,” he stated.