Nigeria News

CBN Directs Banks To Continue Issuance, Acceptance Of Old Naira Notes After Supreme Court Verdict

Published

29 November 2023

5:24 PM

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The Central Bank of Nigeria (CBN) has directed banks to continue issuance and acceptance of old naira notes after the Supreme Court ruled on Wednesday that the old naira notes will continue to be in use beyond the December deadline earlier set by the apex court.

In a statement signed by the bank’s acting director of communication, Sidi Ali Hakama, the bank detailed that it issued the directive after the Supreme Court ruled that both old and new version of the naira notes will continue to be legal tender.

“Following the order of the Supreme Court on Wednesday, November 29, 2023 granting the prayer of the Minister of Justice and Attorney General of the Federation, to extend the use of old naira bank notes ad infinitum, the Central Bank of Nigeria (CBN) has directed all its branches to continue to issue and accept all denominations of Nigerian banknotes, old and redesigned to and from deposit money banks (DMBs),” the statement by Hakama read.

Naija News recalls that the apex court had earlier on Wednesday ruled that old and new naira notes will co-exist as legal tender until further notice.

The apex court, in a ruling by a seven-man panel led by Justice Inyang Okoro, on Wednesday, said the banknotes should remain in circulation, pending when the Federal Government, after due consultation with relevant stakeholders, takes a decision on the matter.

It made the order after hearing an application that was moved on behalf of the federal government by the Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi, SAN.

In its lead judgement that was prepared and delivered by Justice Emmanuel Agim, the apex court slammed the FG for unilaterally introducing the demonitization policy through the Central Bank of Nigeria, CBN, without consulting the Council of States, the Federal Executive Council, the National Security Council, the National Economic Council, Civil Society Organizations and other relevant stakeholders.

It held that the FG failed to give valid notice to all the federating units before it decided to withdraw the old banknotes from circulation and introduce new ones.