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Supreme Court Grants Extended Use of Old Naira Notes — Everything You Need to Know

Supreme Court Orders Old N200, N500, N1,000 Notes To Remain In Circulation Till Dec 31, Nullifies FG's Naira Redesign Policy.

Supreme Court Orders Old N200, N500, N1,000 Notes To Remain In Circulation Till Dec 31, Nullifies FG’s Naira Redesign Policy.

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In a landmark ruling, the Supreme Court of Nigeria has ordered that the old N200, N500, and N1,000 notes remain in circulation until December 31, 2023.

The apex court also nullified the Federal Government’s naira redesign policy, citing it as an affront to the 1999 Constitution.

Justice Emmanuel Agim, who read the lead judgement, dismissed the preliminary objections raised by the defendants, including the Attorney General of the Federation, Bayelsa, and Edo states. He held that the court has the jurisdiction to entertain the suit.

The court cited Section 23(2)1 of the constitution, which holds that disputes between the Federal Government and states must involve law or facts. Furthermore, the apex court noted that President Muhammadu Buhari admitted in a broadcast that the policy was flawed and posed many challenges.

The policy has resulted in many Nigerians engaging in trade by barter, according to the court. It further noted that the President’s disobedience of the February 8 order was a sign of dictatorship.

Sixteen states of the Federation, led by Kaduna, Kogi, and Zamfara, instituted the suit to challenge the legality of the introduction of the policy. The suit, initially filed by Kaduna, Kogi, and Zamfara states, has been scheduled as the first case on the cause list for a final verdict.

Justice John Inyang Okoro led a seven-man panel of Justices of the Court, which fixed February 22 for the court to make its decision known on the suit. The 16 states are praying for the apex court to void and set aside the policy, arguing that it is inflicting hardships on innocent Nigerians. They also accused the President of usurping the function of the Central Bank of Nigeria (CBN) in the introduction and implementation of the policy and asked that the directive issued by Buhari be voided.

On Friday, Governor Nasir El-Rufai of Kaduna State, his Kogi State counterpart, Yahaya Bello, and Zamfara State Governor, Bello Matawalle, were in court to witness the judgment. The two governors were also present at the last hearing.

The CBN had extended the deadline for the swap of old N200, N500, and N1,000 notes from January 31 to February 10 following complaints by many Nigerians. However, the Supreme Court, after a suit filed by the states, held that the Federal Government, the CBN, and commercial banks must not continue with the February 10 deadline pending the determination of a notice regarding the issue.

Nevertheless, in a national broadcast, President Buhari directed the CBN to release old N200 notes into circulation to co-exist with new N200, N500, and N1,000 banknotes for 60 days, ending on April 10, 2023. He also said that old N500 and N1,000 banknotes would cease to be legal tender in Nigeria.

There has been a flurry of reactions and stark criticisms against the President’s directive, including from governors of his party, the All Progressives Congress (APC).

Governors Nasir El-Rufai (Kaduna), Abubakar Badaru (Jigawa), Rotimi Akeredolu (Ondo), Umar Ganduje (Kano); Speaker of the House of Representatives, Femi Gbajabiamila; Minister of State for Labour and Employment, Festus Keyamo; and many stalwarts of the ruling APC have openly censured and faulted the President’s directive, arguing that it has no grounds because the case is before the apex court.

Leading Senior Advocates

The 16 states had argued that the introduction of the policy had caused undue hardship on innocent Nigerians and accused the President of usurping the function of the CBN in the introduction and implementation of the policy.

The Supreme Court held that the President’s directive on the issue was a sign of dictatorship and a disregard for the Constitution. Justice Agim, who read the lead judgment, noted that the policy had led to some Nigerians resorting to trade by barter in order to survive, a practice that is not suitable for modern times.

The court also nullified the Federal Government’s naira redesign policy, declaring it as an affront to the 1999 Constitution. The apex court held that the dispute between the Federal Government and the states must involve law or facts, citing Section 23(2)1 of the constitution.

Furthermore, the court held that the preliminary objections raised by the defendants, including the Attorney General of the Federation and the states of Bayelsa and Edo, were dismissed as the court had the jurisdiction to entertain the suit.

The 16 states had prayed the Supreme Court to void and set aside the policy, arguing that it was inflicting hardships on innocent Nigerians. The states accused the President of usurping the function of the CBN in the introduction and implementation of the policy and asked that the directive issued by the President be voided.

The Supreme Court’s ruling comes after the Central Bank of Nigeria had extended the deadline for the swap of old N200, N500, and N1,000 notes from January 31 to February 10 following complaints by many Nigerians. However, the President, in a national broadcast, directed the apex bank to release old N200 notes into circulation to co-exist with new N200, N500, and N1,000 banknotes for 60 days until April 10, 2023. He also said that old N500 and N1,000 banknotes would cease to be legal tender in Nigeria.

The President’s directive has faced criticism from many quarters, including from governors of his own party, the All Progressives Congress (APC). The governors of Kaduna, Jigawa, Ondo, and Kano, as well as the Speaker of the House of Representatives, Femi Gbajabiamila, and Minister of State for Labour and Employment, Festus Keyamo, have all openly criticized and faulted the President’s directive, arguing that it has no legal grounds because the case is still before the apex court.

Leading Senior Advocates of Nigeria like Femi Falana and Mike Ozekhome have equally faulted the President’s move, saying he cannot overrule the Supreme Court of the land.

In addition, the states of Kaduna, Zamfara, and Kogi have filed another suit against the Attorney General of the Federation, Abubakar Malami, and the CBN Governor, Godwin Emefiele, over contempt of court and their alleged failure to comply with the Supreme Court’s order on the old naira notes.

In conclusion, the Supreme Court’s ruling has put an end to the Federal Government’s attempt to introduce a new naira policy without due regard for the Constitution and the rule of law. The apex court has upheld the rights of the states to challenge the legality of the policy and has sent a clear message that the President’s directive cannot override the Constitution and the orders of the courts.

The ruling has also underscored the importance of the independence of the judiciary as a check on the excesses of the executive branch of government. It has demonstrated that the Supreme Court remains the final arbiter of legal disputes in Nigeria and that its judgments must be respected and obeyed by all.

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Source: MandyNews.com

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