CBN Keeps Mum On Supreme Court Order On Naira Redesign

The Central Bank of Nigeria (CBN) has opted to remain silent after the Supreme Court invalidated the naira redesign policy introduced by the Central Bank of Nigeria (CBN).

Naija News earlier reported that a seven-member panel of the apex court faulted the entire policy of the CBN, saying the timing and implementation were defective.

While delivering judgment in a suit instituted by three states, the apex court also held that the old N200, N500, and N1000 notes remain legal tender until December 31, 2023.

Speaking with The Nation on the development, an official of the CBN, who craved anonymity, said the CBN is a law-abiding organization.

He said:” The CBN is a law-abiding organization that operates as an extension of the Executive arm of government”.

The official, however, said the Supreme Court order will not truncate the CBN’s cashless policy because the policy has been in operation since 2012.

However, the apex bank has not officially reacted to the Supreme Court order on the naira redesign policy.

BACKGROUND

Recall that in October 2022, CBN Governor, Godwin Emefiele, announced the plan to redesign the naira to control the money supply and aid security agencies in tackling illicit financial flows.

The redesigned naira notes were unveiled on December 23, 2022, and the deadline for the implementation of the policy was fixed for January 31, 2023, but it was further extended to February 10.

On February 3, a suit was initiated by Kaduna, Kogi, and Zamfara before the supreme court challenging the implementation of the policy.

Five days later, the supreme court restrained the CBN from giving effect to the deadline on the use of old notes following an ex parte application brought by the three states.

Thirteen (13) other states later joined the suit as co-plaintiffs. The states argued that the implementation of the policy has caused untold hardship for Nigerians.

The Attorney-General of the Federation (AGF), Abubakar Malami, who is the sole respondent, had, however, filed a preliminary objection to the suit.

The AGF argued that the supreme court lacks the jurisdiction to entertain the matter and that the suit ought to have been filed before a federal high court.

Malami also said the plaintiffs failed to join the CBN in the suit.