Finally, CBN directs banks to obey S’Court judgement on old naira notes

The Central Bank of Nigeria (CBN) has directed all commercial banks and the public to comply with the order of the Supreme Court to continue using the old N200, N500 and N1000 notes until December 31, 2023.

Spokesperson for the CBN, Isa Abdulmumin, announced the development in a statement on Monday evening.

The the statement read, “In compliance with the established tradition of obedience to court orders and sustenance of the Rule of Law Principle that characterized the government of President Muhammadu Buhari, and by extension, the operations of the Central Bank of Nigeria (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.”

Two weeks ago, the Supreme Court invalidated the naira redesign policy introduced by the CBN, citing a 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.

However, over one week since the verdict, neither the CBN governor nor the attorney-general of the federation made any official statement about compliance with the apex court ruling.

The uncertainty about the true status of things prompted traders and businesses across the country to continue rejecting the old currency.

The apex bank’s statement came few hours after the presidency said the CBN had no reason not to comply with court orders on the excuse of waiting for directives from President Muhammadu Buhari.