Emefiele Bows To Pressure: As CBN Declares Old N200, N500 and N1000 Notes Legal Tender

Governor of Central Bank of Nigeria (CBN), Godwin Emefiele, has finally obeyed Supreme Court's verdict on naira redesign policy.

The apex bank has officially declared the old N200, N500 and N1000 notes remain legal tender till 31 December, 2023.

Isa Abdulmumin, the spokesperson of the apex bank, announced the change of stance by CBN in a statement on Monday.

The u-turn by the apex bank followed about two months of harrowing pains and agonies Nigerians were made to go through following the naira redesign policy introduced by the CBN.

Abdulmumin, in a two-paragraph statement, stated that the decision to recognise the affected old naira denominations was in compliance with the judgment of the Supreme Court, asking the CBN to retain the old notes as legal tender till the end of the year.

He consequently directed Deposit Money Banks (the commercial banks) across the country to comply with the apex court ruling of 3 March, 2023.

The CBN, however, further stated that the old N200, N500 and N1000 notes remained legal tenders, alongside the redesigned notes till the end of the year.

“In compliance with the established tradition of obedience to court orders and sustenance of the Rule of Law Principle that characterised the government of President Muhammadu Buhari, and by extension, the operations of the CBN, as a regulator, Deposit Money Banks operating in Nigeria have been directed to comply with the Supreme Court ruling of March 3, 2023.”

“Accordingly, the CBN met with the Bankers’ Committee and has directed that the old N200, N500 and N1000 banknotes remain legal tender alongside the redesigned banknotes till December 31, 2023.

“Consequently, all concerned are directed to conform accordingly,” the CBN spokesperson stated in the short statement.

The Supreme Court had, two weeks ago, invalidated the naira redesign policy introduced by the CBN, citing defective timing and implementation.

Delivering judgment in a suit instituted by three states of the federation, a seven-member panel of the apex court held that the old N200, N500 and N1000 notes remain legal tender until the end of the year.

This was after 16 states of the Federation instituted a suit to challenge the legality or otherwise of the introduction of the policy.

The 16 states, led by Kaduna, Kogi and Zamfara, had prayed the apex court to void and set aside the policy on the ground that it was inflicting hardships on innocent Nigerians.

The apex-court subsequently ruled that President Muhammadu Buhari’s disobedience of its 8 February order was reflective of dictatorship.

It also averred that the president breached the Nigerian Constitution (as amended) by single-handedly issuing directives to the CBN to re-design the Naira without consulting with the federating states.

The apex court also declared as illegal the directive, on 16 February, by the Presidency that the old N500 and N1000 notes remained banned and stating that only the old N200 notes remained the legal tender till April 20.

However, the CBN Management, under Emefiele, choose to ignore the ruling by the Supreme Court, thus throwing bank customers and Nigerians into confusion, sufferings and pains.

In the midst of the confusion and sufferings, the state governors had given the CBN up till tomorrow (Tuesday) as the deadline to recognise the old N500 and N1000 notes as legal tender, alongside the redesigned denominations.