Nigeria
FG requests Supreme Court to extend validity of old notes beyond December 31
On Wednesday, the Federal Government requested that the Supreme Court extend the period of time that obsolete naira notes can be used as legal cash.
The government also requests that the court revoke its ruling on March 3 directing that the old and new naira notes be kept together until December 31.
The Central Bank of Nigeria (CBN) declared in March that expired N200, N500, and N1,000 banknotes would continue to be accepted as legal cash through December 31, 2023.
It said that the extra time was required and that it was unable to create enough new notes to gradually phase out the old currency before the order expires on December 31.
The Federal Government is requesting the following reliefs in a new application filed by Lateef Fagbemi, the Attorney-General of the Federation:
a court ruling reversing the consequential order stated in the March 3, 2023, judgement, stating that the old 200, 500, and 1,000 naira notes would be legal tender through December 31, 2023.
The Federal Government went on to say that if the Supreme Court rejects its request to prolong the period that old notes can be circulated, the nation could find itself in a similar national, economic, and financial crisis to the one that occurred during 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.
According to the administration, it has been interacting with the ten plaintiff states in their roles as National Economic Council and National Council members.
In the best interests of the public, the ten plaintiffs petitioned the Supreme Court, and as a result, the court issued a ruling extending the old notes’ circulation until December 31.
It was reported that the administration understood that the old notes would no longer be in circulation after December 31 absent a new decision from the Supreme Court.
The Supreme Court has scheduled a hearing for November 30.
