In a pivotal ruling on Wednesday, the Supreme Court mandated the continued coexistence of the old N200, N500, and N1000 notes alongside their newer counterparts until further directives.
The apex court declared that both the old and new notes would retain their status as legal tender until the Federal Government initiates a comprehensive process for their replacement or redesign, following due consultations with relevant stakeholders.
The seven-member panel, led by Justice Inyang Okoro, issued the ruling in response to an application by the Federal Government. The government sought an extension of the time frame for the old naira notes to remain in circulation as legal tender.
Additionally, the Federal Government urged the court to revoke its earlier order from March 3, citing the necessity for the extension. The government explained that it has faced challenges in printing the required volume of new notes for a seamless phase-out of the old currency before the stipulated December 31 deadline.
Attorney-General of the Federation (AGF) Lateef Fagbemi, in the fresh application, elaborated that refusing the extension could lead to another national economic and financial crisis. He referenced the challenges experienced in the first quarter of the year during the implementation of the naira redesign policy under the former Central Bank of Nigeria (CBN) Governor, Godwin Emefiele.
The Federal Government emphasized the potential risks to the economy if the old notes were not allowed to circulate with the new notes until after consultations with stakeholders. Concerns were raised that hoarding of both old and new naira notes had already commenced in anticipation of the December 31st deadline.
In a unanimous decision, the seven-man panel granted Fagbemi’s application. Notably, in mid-November, the Central Bank of Nigeria (CBN) had already announced that the old N200, N500, and N1,000 notes would remain legal tender indefinitely.