Supreme Court Stops Buhari Government From Suspending Old Naira Notes By February 10

 

The Supreme Court has temporarily halted the Nigerian government’s move to stop the use of old naira notes on February 10, 2023.

 

 This was stated in a ruling given by a seven-member panel led by Justice John Okoro for an ex parte application brought by three northern states of Kaduna, Kogi, and Zamfara,

The three states had specifically applied for an order of Interim Injunction restraining “the federal government through the Central Bank of Nigeria (CBN) or the commercial banks from suspending or determining or ending on February 10, 2023, the time frame with which the now older version of the 200, 500 and 1,000 denomination of the naira may no longer be legal tender pending the hearing and determination of their motion on notice for interlocutory injunction.”

On Wednesday, Mr A. I. Mustapha, SAN, counsel for the applicants, urged the Supreme Court to grant the application in the interest of justice and the well-being of Nigeria.

He stated that the policy of the government had led to an “excruciating situation that is almost leading to anarchy in the land.”

While referring to Central Bank of Nigeria (CBN) statistics indicating that more than 60% of Nigerians do not have bank accounts, Mustapha lamented that the few Nigerians who do have bank accounts are unable to access their funds as a result of the policy.

Delivering ruling in the motion, Justice Okoro, held that after a careful consideration of the motion ex parte this application is granted as prayed, “An order of Interim Injunction restraining the federal government through the Central Bank of Nigeria (CBN) or the commercial banks from suspending or determining or ending on February 10, 2023, the time frame with which the now older version of the 200, 500 and 1,000 denomination of the naira may no longer be legal tender pending the hearing and determination of their motion on notice for interlocutory injunction.”

He accordingly adjourned to February 15, 2023 for hearing of the main suit.

Nigerians have been having difficulty obtaining the new naira notes as the February 10 deadline approaches.

This was why some banks in the state have been attacked, and protests in states such as Ondo, Edo and Oyo have devolved into riots.

Banks have recently been the target of violent attacks. When riots erupted over the weekend in Ibadan, a Wema Bank branch was vandalised. Many banks have increased their security and caution as a result of this.

Due to the heightened tensions caused by the country’s protracted naira scarcity, some commercial banks on Tuesday ordered the closure of some of their branches until further notice.

Governors of the ruling party had met with the President last week and pleaded with him to allow old notes and the new ones co-exist.

The president had told them to give him seven days to look into the issues arising from naira redesign.

However, after the meeting, Godwin Emefiele, CBN governor, warned that the apex bank was not considering shifting the February 10 deadline for the old notes to cease being legal tender.