Supreme Court Rules Old Naira Notes to Co-Exist with New Ones Indefinitely

Supreme Court Rules Old Naira Notes to Co-Exist with New Ones Indefinitely

In a landmark decision on Wednesday, the Supreme Court of Nigeria declared that the old Naira denominations of N200, N500, and N1,000 notes will continue to co-exist with the recently introduced notes until further notice.

This ruling ensures that both the old and new currency notes will remain as legal tender beyond the previously set deadline of December 31.

The court emphasized that the Federal Government must establish a transparent process for the replacement or redesign of the old notes after conducting thorough consultations with relevant stakeholders.

The apex court’s decision follows its earlier order on March 3, which restrained the Central Bank of Nigeria (CBN) from implementing the initially stipulated deadline for the use of the old notes.

Despite the court’s intervention, the CBN had, on November 14, extended the validity of the old N200, N500, and N1,000 notes indefinitely. The move by the apex bank aimed to provide flexibility and ensure a smooth transition for the public.

The decision to introduce redesigned N200, N500, and N1,000 denominations was initially implemented by the CBN in October 2022, accompanied by specific deadlines for the phasing out of the old design from circulation.

This recent development offers a reprieve for individuals and businesses alike, allowing them to continue using the older Naira notes without fear of their legal tender status expiring.

The Supreme Court’s decision underscores the importance of a well-thought-out and consultative approach by the government in managing currency transitions to avoid disruptions in the financial system.

As the nation awaits further directives from the Federal Government on the replacement or redesign process, the co-existence of old and new Naira notes serves as a temporary but necessary measure. The decision by the Supreme Court ensures that the financial landscape remains stable, providing assurance to citizens and businesses during this transitional period.

This ruling by the Supreme Court marks a significant development in the ongoing discussions surrounding the nation’s currency, offering a balance between the introduction of modernized notes and the need for a seamless transition for the Nigerian populace.