The Nigerian Supreme Court has ruled that the old N200, N500 and N1,000 naira banknotes should remain in circulation until 31 December 2023.
Earlier, Nigerian President Muhammadu Buhari had announced that the naira would be redesigned. This announcement by Buhari was overruled by the Nigerian Supreme Court. The seven-member tribunal led by John Okoro, in a unanimous decision, stated that President Buhari issued the directive without consultation.
Court: President Buhari Issues Directive Without Consultation
The court said the federal government should consult the state government through the relevant body, including the National Council of States and the National Economic Council, before embarking on such a policy.
The high court found Buhari’s directive to withdraw old banknotes from circulation illegal, declaring this decision an insult to the 1999 Constitution. The court thus annulled Buhari’s directive and extended the legal tender status of paper money until 31 December.
Late last year, Buhari ordered the withdrawal of the N200, N500 and N1,000 banknotes by January 31, 2021.
Described as a demonization policy by some dissenting state governors, the directive led to banknote shortages, disrupting the financial system and putting millions of citizens in a difficult position. The inaccessibility of cash due to the shortage of banknotes directly affected many businesses.
