Supreme Court Suspends Outlawing Of Old Naira Notes

The Federal government’s plan to outlaw the use of the old N200, N500 and N1000 notes as legal tender starting on February 10 has been temporarily blocked by the Supreme Court of Nigeria.

The order was issued by the Supreme Court in response to an exparte application brought before it by the governments of Kaduna, Zamfara, and Kogi against plans by the FG to discontinue the usage of the old Naira notes.

The former versions of the N200, N500, and N1000 notes would no longer be considered legal money at any point after February 10, 2023, according to the three states’ petition for an order of temporary injunction barring the FG through the Central Bank of Nigeria or the commercial banks.

The applicants’ attorney, Mr A. I. Mustapha, SAN, filed the application today and pleaded with the supreme court to approve it in the interest of justice and the welfare of Nigeria. Mustapha argued that the policy of the government had led to an “excruciating situation that is almost leading to anarchy in the land.”

Mustapha bemoaned that, as a result of the policy, the few Nigerians who do have bank accounts are unable to even access their funds from the bank, despite statistics from the Central Bank of Nigeria (CBN) estimating the number of persons without bank accounts at over 60%.

The senior attorney added that since the majority of banks are already shutting down their activities if the Supreme Court does not step in, the situation will result in chaos.

The seven-member panel, led by Justice John Okoro, ruled on the petition and stated that, following careful examination of the motion exparte, this application is granted as requested, “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 further set the hearing date for February 15, 2023.