By Pascal Ibe
On 24 October (Thursday), the House of Representatives claimed the deadline for old naira notes to cease being legal tender is December 31, 2024.
The lower legislative chamber asked the Central Bank of Nigeria (CBN) to sensitize Nigerians to the deadline and to order commercial banks to stop payment of old N200, N500, and N1,000 notes to customers.
The green chamber passed the resolution during plenary, following the adoption of a motion sponsored by Afam Ogene, a member of the Labour Party from Anambra state
In 2022, the CBN under Godwin Emefiele, the former governor, redesigned the N200, N500 and N1,000 notes.
The deadline for using the old notes as legal tender was January 31, 2023, but it was extended to February 10.
The policy caused severe hardship, leading to cash scarcity and protests across the country.
First Supreme Court ruling in March
In March 2023, Nigeria’s Supreme Court declared the government’s rollout of newly-designed currency to be unconstitutional and ordered that old notes remain in circulation until the end of the year.
The Supreme Court ruling followed a lawsuit filed on February 16, 2023, by Nigerian state governors asking that the old 200-, 500- and 1,000-naira notes be allowed to circulate for a longer period.
Justice Emmanuel Agim ruled the policy backed by President Muhammadu Buhari was an unconstitutional use of executive power and breached the fundamental rights of Nigerian citizens.
Tinubu’s advisory council recommends extension of old naira notes till Dec 2024
In June 2023, the policy advisory council of President Bola Tinubu asked the federal government to extend the validity of the old naira notes to December 31, 2024.
The recommendation was made in a report, titled, ‘Policy Advisory Council Report: National Economy Sub-committee’.
The council also suggested the implementation of a gradual phase-out (every month) of the old currency notes.
“Extend the December 31st, 2023, deadline to December 31st, 2024 (if required),” the document reads.
“Bring in new notes through the deposit money banks by 5% monthly and take out the old notes through the deposit money banks by the same 5% (12-18 months).”
Old naira notes validity till further notice
On November 29, 2023, the Nigeria Supreme Court ruled that the Old Naira notes will remain legal tender of the country till further notice.
The court maintained that the old and new notes should remain as legal tender beyond December 31 until the Federal Government puts a process in place for their replacement or redesign after due consultation with relevant stakeholders.
The CBN, on November 14, extended the validity of the old N200, N500 and N1,000 notes indefinitely.
CBN answers House of Reps
On Friday, the Central Bank of Nigeria debunked reports claiming that the old series of N200, N500, and N1,000 banknotes will cease to exist as legal tender by December 31, 2024.
In a statement released on Thursday by the acting Director of Corporate Communications, Sidi Hakama, the CBN noted that the order of the Supreme Court of Nigeria on Wednesday, November 29, 2023, to extend the use of old naira banknotes still holds indefinitely.
Conclusion
There was never a ruling by the Supreme Court at any time that the deadline for old naira notes to cease being legal tender is December 2024. The House of Reps is ignorant of the last judgment by Nigeria’s highest court.
