UPDATED: CBN directs banks to comply with Supreme Court order, accept old N200, N500, N1000 notes

Old and new naira notes

CBN said, “In compliance with the established tradition of obedience to court orders and sustenance of the Rule of Law Principle that characterised the government of President Muhammadu Buhari, banks operating in Nigeria have been directed to comply with the Supreme Court ruling of March 3, 2023.”

By Emma Ogbuehi

The Central Bank of Nigeria (CBN) has directed Deposit Money Banks to comply with the Supreme Court’s judgement of March 3, which revalidated the old N1,000, N500 and N200 notes as legal tender till December 31, 2023.

The directive is contained in a statement by CBN’s acting Director, Corporate Communications, Isa AbdulMumin, on Monday.

The statement reads: “In compliance with the established tradition of obedience to court orders and sustenance of the Rule of Law Principle that characterised the government of President Muhammadu Buhari, and by extension, the operations of the Central Bank of Nigeria, as a regulator, Deposit Money Banks operating in Nigeria have been directed to comply with the Supreme Court ruling of March 3, 2023.

“Accordingly, the CBN met with the Bankers’ Committee and has directed that the old N200, N500 and N1000 banknotes remain legal tender alongside the redesigned banknotes till December 31, 2023.

“Consequently, all concerned are directed to conform accordingly.”

CBN’s directive is coming shortly after President Muhammadu Buhari threw Emefiele under the bus, literally, when he disowned him over his inability to obey the judgement of the Supreme Court on the Naira redesign. 

Buhari declared in a statement by his media aide, Mallam Garba Shehu, that he has never instructed the Attorney General of the Federation, Abubakar Malami, and Emefiele to disobey any court orders involving the government and other parties.

The president spoke against the backdrop of the general impression that the refusal of the CBN to obey the Supreme Court order for the extension of the use of old naira notes along with the redesigned ones, was with his consent.

Buhari said it was wrong to blame him for the controversy trailing the refusal of the CBN to comply with the Supreme Court order.

“The Presidency wishes to react to some public concerns that President Muhammadu Buhari did not react to the Supreme Court judgement on the issue of the N500 and N1,000 old currency notes, and states here plainly and clearly that at  no time did he instruct the Attorney General and the CBN Governor to disobey any court orders involving the government and other parties,” the statement read.

“Following the ongoing intense debate about the compliance concerning the legality of the old currency notes, the Presidency therefore wishes to state clearly that President Buhari has not done anything knowingly and deliberately to interfere with or obstruct the administration of justice.

“The President is not a micromanager and will not, therefore, stop the Attorney General and the CBN Governor from performing the details of their duties in accordance with the law.”

Also on Monday, the Nigerian Labour Congress (NLC) threatened to shut down the economy if the federal government fails to address the lingering naira scarcity within seven days.

The seven-day ultimatum was issued after an emergency Central Working Committee (CWC) meeting in Abuja.

The NLC President, Comrade Joe Ajaero, while briefing journalists, said Nigerians were suffering as a result of the Central Bank of Nigeria’s cashless policy and threatened to ask workers to withdraw their services around the country if the problem is not resolved in the next seven days.

The NLC President said: “On the issue of cash crunch, the NLC is giving the FG, the agencies under it including the CBN and other banking institutions seven working days to address it. If they fail to do it at the expiration of the seven working days, the Congress is directing all workers in the country to stay at home because it has become very difficult to access even N1, especially for traders who do not have bank accounts.

“We’ve also discovered that even when banks give out old currencies, it can’t be spent. Even when you take them back to the same banks, they’re not accepting them. We’ve been frustrated to a level that we can no longer keep quiet.”

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