No More Deadline: Supreme Court Legalizes Use of Old N200, N500, N1,000 Notes
- The Supreme Court ruled that the December deadline for the phase-out of old notes is no longer valid
- The apex court said that the old notes and the new notes will continue to be recognized as legal tender
- The AFG stated that the nation does not have enough new currency notes to cater to Nigerian needs
The Supreme Court in Nigeria has finally ruled on the legality of the old naira notes.
The apex court granted the request for the extension of the lifespan of the N200, N500, and N1000 notes under the previous administration led by former President Muhammadu Buhari.
Source: UGC
Recall that the federal government last week enjoined the Supreme Court to extend the deadline for the old naira notes to remain in circulation.
In light of the order given on March 3rd that the old naira note should remain legal tender until year-end, the federal government earlier sought an extension of the deadline.
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A panel of the apex court on Wednesday, December 29, 2023, however, ordered that the old notes remain legal tender until necessary facilities are put in place for their replacement according to a report by The Cables.
Led by Inyang Okoro, the seven-member panel said both the new note and old notes will continue to be Nigeria’s legal tender pending when the right consultation is made with relevant stakeholders.
Not enough new notes to circulate
Lateef Fagbemi, the attorney-general of the federation (AGF) cited that the nation has not been able to print a significant amount of new notes enough to phase out the old currency before the 31st December deadline.
The AGF said,
“Since the said consequential order was made, the federal government in compliance with this honorable court’s order directed the CBN to engage and has been engaging the respondents in their capacities and their capacities as members of the National Council of State and National Economic Council concerning the naira redesign policy.
"In between the time the order was made and now, there was a presidential election in the country which has led to a transition from the immediate past government and the incumbent government which is just settling down."
Currency in Circulation Hits All-Time High, Returns to Pre-Naira Redesign Periods
Legit.ng reported that data from the Central Bank of Nigeria shows that currency in circulation in Nigeria has increased to N2.299 trillion in October 2023, the highest since this year.
The amount represents 115.10% compared to the N1.39 trillion recorded in January this year and 8.33% higher than the N2.76 trillion in September.
In October last year, the apex bank withdrew the old N200, N500, and N1000 notes from circulation. It issued new designs, resulting in a temporary decline in currency in circulation as Nigerians exchanged their old naira notes for new ones.
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Source: Legit.ng
