CBN has authorised re-circulation of old banknotes, says Soludo

Anambra State Governor, Prof Charles Soludo, disclosed, Monday, that the Central Bank of Nigeria (CBN) has finally authorised Deposit Money Banks in the country to commence accepting and dispensing the old Naira notes in line with the ruling of the Supreme Court.

The development comes barely 24 hours after the apex northern socio-political group, the Arewa Consultative Forum had issued a warning to President Muhammadu Buhari on the dangers of his administration’s continued disobedience to the Supreme Court ruling with annulled the CBN deadline on circulation of old Naira notes as legal tender.

Prof. Soludo, a former Governor of the CBN, who was addressing residents of the state on the development, early Monday, quoted the CBN Governor, Godwin Emefiele as having issued the latest directive during the Bankers’ Committee meeting held on Sunday, March 12, 2023.

According to Soludo, the CBN Governor personally confirmed the development to him during a phone conversation, Sunday night.

The Anambra governor, therefore, in the statement, urged business operators to comply with the CBN order and begin accepting the old naira notes as legal tender.

It would be recalled that the Supreme Court had first ruled in February 8 and again in February 15 asking the CBN to continue using the old notes as legal tender despite the latter’s insistence of implementing its deadline of January 31, this year.

In its latest ruling, last week, in the suit filed by state governors in the country; Yahaya Bello (Kogi), Nasir El-Rufai (Kaduna) and Bello Matawalle (Zamfara), who are challenging the legality of the CBN’s Naira redesign policy and the deadline on old banknotes use, the Supreme Court held that the CBN had no right to withhold savings belonging to the people.

In a unanimous judgement read by Justice Emmanuel Agim last Friday, the Supreme Court ruled that the deadline given by the CBN for the currency swap was too short and therefore extended it to December 31 as it also ordered that the old 500 and 1000 Naira notes be used for transactions alongside the new notes until that date.

However, since the latest ruling, commercial banks and other businesses have continued to decline accepting the old notes for transactions, especially as the CBN had refused to confirm its readiness to comply with the judgement, even as scarcity of all the Naira notes continued to worsen across the country.

Soludo in his address, released via his Facebook page in early Monday,  confirmed that he has spoken with the CBN Governor, and he (Godwin Emefiele) has approved the use of old Naira Notes.

“Commercial banks have been directed by the Central Bank to dispense old currency notes and to also receive same as deposits from customers.

“Tellers at the commercial banks are to generate the codes for deposits and there is no limit to the number of times an individual or company can make deposits

“The Governor of the CBN gave the directive at a Bankers’ Committee meeting held on Sunday, 12th March, 2023. The Governor, Dr Godwin Emefiele, personally confirmed the above to me during a phone conversation on Sunday night. Residents of Anambra are therefore advised to freely accept and transact their businesses with the old currency notes (N200; N500; and N1,000) as well as the new notes.

“Residents should report any bank that refuses to accept deposits of the old notes. Anambra State Government will not only report such a bank to the CBN, but will also immediately shut down the defaulting branch,” the governor said in a statement he personally signed.

Meanwhile, as at press time, the CBN has yet to confirm Soludo’s claims.

Only, last weekend the apex-Northern socio-political group, the Arewa Consultative Forum (ACF) had warned President Muhammadu Buhari on his administration’s continued disobedience to the Supreme Court ruling on the old notes.

In a statement issued by its Secretary-General, Murtala Aliyu, weekend, the forum warned said that the scarcity of naira notes could lead to a breakdown of law and order in the country.

The ACF also reminded President Muhammadu Buhari of the damage the policy which immediate goals are not entirely clear to a majority of Nigerians would cause to his reputation as a democrat and a stickler for the rule of law.

“Some 10 days ago, the Supreme Court of Nigeria held that President Muhammadu Buhari breached the constitution in the way he issued a directive to the CBN for the redesign of the naira without consulting with the National Council of States and the Federal Executive Council.

“It went further to rule that the unconstitutional use of powers by the president on the naira redesign has breached the fundamental rights of Nigerian citizens in various ways.

“The state governors have persistently argued that the policy which permitted the CBN to place an embargo on the circulation of old N500 and N1,000 naira notes, while not providing their replacement in sufficient amounts, had triggered severe cash shortage and chaos in the economy.

“It has led to runaway inflation in food and other commodities. Huge crowds and long queues form around bank offices and ATM points across the country as people struggle to get new cash which has remained extremely scarce. It has triggered riots and other forms of civil unrest.

“Whatever the CBN or anyone else say about the benefits of the policy, which evidently are many, is of little comfort as soon as the highest court in the country has deemed that it is, or at least the manner of its implementation, breaches the law.

“10 days is long enough time for the government to find its way towards complying with a court order which import is central to the achievement of peace, order and good governance in the country.

“President Buhari is under oath to defend the constitution of Nigeria. As his long-term supporters, it will be remiss of us if we fail to warn that the much-touted benefits of the Naira redesign can never justify the damage to his credentials as a democrat and a stickler for the rule of law.”