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From Uche Usim, Abuja
Some Deposit Money Banks (DMBs) in Abuja, have begun dispensing the old N500 and N1,000 notes, following last week’s Supreme Court’s ruling that extended their validity to December 31.
Since last week’s ruling, there has been confusion across the country, as the Presidency and the Central Bank of Nigeria (CBN) have kept mum on the matter.
Although the CBN was not a party to the suit by State Governors challenging the naira redesign policy, legal experts say the apex bank would need President Muhammadu Buhari’s approval to determine its next line of action, as matters of currency change need presidential nod to fly.
Nonetheless, Daily Sun observed that two new generation banks in Garki area of Abuja, accepted and issued the old N500 and N1,000 naira notes, while an old generation bank in Jabi Abuja also did the same.
GTB in Alausa, Lagos also paid customers with old notes. Customers who were able to deposit their old notes expressed joy over the matter.
Joseph Ogazi, an entrepreneur said: “I had about N60,000 old notes with me after the deadline. I thought it was a huge loss but thank God I was able to deposit it today”, he said.
The Supreme Court last Friday, restored the legal tender status of the old N200, N500 and N1,000 notes, saying they would remain in circulation till December 31, 2023.
President Muhammadu Buhari, in a nationwide broadcast on February 16, ordered the Central Bank of Nigeria (CBN) to return the old N200 naira note into circulation for a period of 60 days (until April 10) in order to ease the pressure occasioned by naira notes scarcity. He said the old N500 and N1,000 remained junked.
Nonetheless, Justice Emmanuel Agim, who read yesterday’s lead judgment, completely nullified the Federal Government’s naira redesign policy, saying it mortifies the 1999 Constitution.
According to him, the preliminary objections by the defendants (the Attorney General of the Federation, Bayelsa and Edo states) are dismissed as the court has the jurisdiction to entertain the suit. He cited Section 23(2)1 of the constitution and clarified that the dispute between the Federal Government and states must involve law or facts. The Supreme Court further stated that President Muhammadu Buhari in his broadcast admitted that the policy was fraught with a litany of challenges.
Describing the currency redesign policy as disruptive, the apex bank held that many people, in a bid to survive, resorted to the antiquated trade by barter arrangement.
The court added that the President’s disobedience of the February 8 order was tantamount to dictatorship.
The apex court further held that President Buhari breached the Constitution of the Federation in the ways he issued directives for the re-designing of the Naira by the CBN. Justice Agim further held that the President failed to consult the National Council of States, Federal Executive Council (FEC) and the National Economic Council (NEC) before directing the CBN to unlawfully introduce new Naira notes. The apex court added that the unconstitutional use of powers by President Buhari on Naira Re-designing has breached the fundamental rights of the Nigerian citizens in various ways.
Meanwhile, economic experts have described the apex court’s ruling as most timely and soothing.
They have asked the apex bank to immediately comply and ensure the old notes operate side by side with the new ones in order to end the notes scarcity nightmare.
Nigeria’s first professor of the capital markets, Prof Uche Uwaleke, in a telephone interview with Saturday Sun advised the CBN to immediately comply with the ruling since it has come from the final court in the land.
“Doing so will help revive economic activities and reduce the current difficulties being experienced by Nigerians on account of the policy.
“Be that as it may, it’s important to recognize that the CBN has recorded some achievements in terms of the objectives it set out to achieve. The reduction in huge cash circulating outside the commercial banks, the surge in electronic transactions, increase in financial Inclusion are part of the achievements recorded thus far.
“The time frame till December 31, 2023 provides an opportunity for the CBN to re-assess the policy and improve on its implementation without causing distortions to the economy”, Uwaleke said.
