- Says old notes remain legal till Dec 3
BY EDMOND ODOK – The Supreme Court on Friday nullified the Federal Government imposed ban on use of the old N200, N500 and N1000 banknotes as legal tenders in the country.
Similarly, the apex Court also whipped President Muhammadu Buhari for introducing the policy, without due consultation with the Council of States, the Federal Executive Council (FEC), the Civil Society and other relevant stakeholders.
In a unanimous decision by a seven-member panel of Justices, the apex Court declared that the old banknotes should remain valid legal tenders until December 31, 2023.
It further held that the old Naira notes should be used alongside the redesigned currencies until the end of this year.
Declaring the Naira redesign policy as unlawful being a unilateral decision initiated by the Federal Government without due consultations with all relevant stakeholders and against the constitutional provisions, the apex Court also slammed President Buhari for acting above the law.
The lead judgement, delivered by Justice Emmanuel Agim, not only accused the President of disobeying the apex Court’s interim order that halted the full implementation of the new monetary policy, but also noted that he usurped the powers of the CBN by issuing the directive banning the old naira notes of N1,000, N500 and N200 notes from February 10, 2023
According to the justices, the three months timeline was also not in tune with the Central Bank of Nigeria’s Act and as such unconstitutional.
On the defendant’s argument that the court lacked jurisdiction to decide on the case, Justice Agim said the act of the President and government of Nigeria is an act of the federation while also declaring that the dispute is between the states and the government of the Federation and within the original jurisdiction of the court
While maintaining that the Federal Government should have held adequate consultation to avoid massive disruption of government operations and trades, the apex Court further invalidated the argument that the CBN was the proper party to be sued, noting that it was not the action of the CBN that is being challenged but the validity of the President’s decision to redesign the naira, release the new notes into circulation and withdraw the old notes without consultations with Nigerians through the Council of States and the National Economic Council.
Therefore, the apex Court held that the CBN does not have to be joined as a party in the suit because it has no power to carry out the policy without the directive of the president and that the suit is not an action against the banks or the CBN.
