A seven-member panel of the Supreme Court led by Justice John Okoro Friday invalidated the new naira redesign policy of the federal government and ordered the old N200, N500, N1,000 notes to remain legal tender till December 31.
The court held that President Muhammadu Buhari’s directive for the redesign of the new notes and withdrawal of the old notes without due consultation and in line with constitutional provisions is invalid.
A member of the panel, Justice Emmanuel Agim, who read the lead judgement, also condemned the president’s disobedience of the court’s February 8 order that the old N200, N500, and N1000 notes should continue to circulate alongside the new ones.
Following, the apex court ordered that the old naira notes shall continue to be used side by side with the new naira notes till December 31, 2023.
The court held that the three months timeline was also not in tune with the Central Bank of Nigeria’s Act and as such unconstitutional.
He said the president’s broadcast of February 16 that only N200 notes should remain legal tender made Nigeria’s democracy look like a mere pretension while democracy is replaced with autocracy.
“It is not in doubt that the president refused to comply with the order of the court that the old 200, 500, and 1,000 naira notes should continue to be legal tender.
“Interestingly, there is even nothing to show that that the president’s directive for the release of N200 notes was implemented.
“I agree that the first defendant ought not to be heard when the president has refused to obey the authority of this court.
“Disobedience of order of court shows the country’ democracy a mere pretension and now replaced by autocracy,” the judge said.
Besides, the apex court argued that president Buhari usurped the powers of the CBN when he issued the directive banning the old naira notes of N1, 000, N500 and N200 notes from February 10, 2023.
Agim stated that the act of the president and government of Nigeria is an act of the federation.
The court held that the dispute is between the states and the government of the federation and within the original jurisdiction of the court
It held that the government of the federation should have held adequate consultation to avoid massive disruption of government operations and trades.
It invalidated the argument that the CBN was the proper party to be sued, maintaining that it is not the action of the CBN that is being challenged but the validity of the decision of the president to redesign naira, release the new notes into circulation and withdraw the old notes without consultation with Nigerians through the council of states and the National Economic Council.
The court held that the CBN does not have to be joined as a party in the suit as the CBN 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.
Recall that the old high denomination banknotes were initially meant to be phased out on March 31, 2023 before it was extended to February 10 due to supply deficit on the part of the CBN.
Three state governments – Kaduna, Kogi, and Zamfara – sued the federal government at the Supreme Court over the issue on 3 February, seeking an order invalidating the policy.
On February 8, two days ahead of the February 10 deadline set by the CBN to end the use of the old N200, N500, and N1,000 notes, the Supreme Court granted an interim order suspending the implementation of the policy.
The court ordered that both the old notes and their newly designed versions should remain legal pending further hearings in the suit.
However, on February 16, the president directed the Central Bank of Nigeria (CBN) to extend the deadline for the naira swap policy to April 10, 2023.
The president also directed the apex bank to release the old N200 bank note back into circulation.
He said the currency should circulate as legal tender with the new N200, N500, and N1000 banknotes
He also instructed the CBN to “ensure that new notes become more available and accessible to our citizens through the banks.”
“I have given approval to the CBN that the old N200 bank notes be released back into circulation and that it should also be allowed to circulate as legal tender with the new N200, N500, and N1000 banknotes for 60 days from February 10, 2023 to April 10 2023 when the old N200 notes ceases to be legal tender.
“In line with Section 20(3) of the CBN Act 2007, all existing old N1000 and N500 notes remain redeemable at the CBN and designated points,” the president said.
