Finally, CBN authorises old Naira banknotes as legal tender till Dec. 31

Central Bank of Nigeria (CBN) has finally broke its silence on the state of the old Naira banknotes as it authorized commercial banks in the country to commence dispensing and acceptance the currencies alongside the newly-redesigned ones, with immediate effect.

The authorisation follows barely hours after the Presidency disowned the CBN Governor, Godwin Emefiele and the Attorney General of the Federation (AGF) and Minister of Justice, Mr Abubakar Malami over their continued refusal to obey the ruling of the Supreme Court which had severally annulled the deadline given by the regulatory bank to discard the old notes.

The CBN, in a statement confirming the development, signed by its Spokesperson, Isa Abdulmumin, Monday night, disclosed that the bank had also approved for both the old and new banknotes remain legal tender till December 31, this year, as ordered by the Supreme Court, last Friday, in Abuja.

According to CBN, the old N200, N500 and N1000 should now be dispensed and accepted by commercial banks.

“In compliance with the established tradition of obedience to court orders and sustenance of the Rule of Law Principle that characterized the government of President Muhammadu Buhari, and by extension, the operations of the Central Bank of Nigeria (CBN), as a regulator, Deposit Money Banks operating in Nigeria have been directed to comply with the Supreme Court ruling of March 3, 2023.

“Accordingly, the CBN met with the Bankers’ Committee and has directed that the old N200, N500 and N1000 banknotes remain legal tender alongside the redesigned banknotes till December 31, 2023.

Consequently, all concerned are directed to conform accordingly,” the CBN statement read.

Earlier Monday, the Anambra State Governor, Prof Charles Soludo, had informed that 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 which had 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.

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.

However, despite the development, the CBN declined to confirm the directive from the Anambra Governor.

Hours later same Monday, the Lagos Governor, Babajide Sanwo-Olu, also directed residents of the state to continue using the old Naira banknotes in line with the Supreme Court ruling which had ordered its legality until December 31, this year.

Governor Sanwo-Olu further threatened that ‘anyone rejecting these notes will be heavily sanctioned as we kick off monitoring,’ even as he urged ‘all businesses in Lagos to accept the old notes as it is legal tender.’

“My dear Lagosians, I have noted the difficulties that you have been having over the naira redesign crisis. I feel your pains.

“Kindly note that commercial banks have been directed to accept the old N500 and N1,000 notes as deposits and pay them out for withdrawals.

“Putting the needs of our residents above all, we successfully got a Supreme Court verdict which extends the validity of the existing Naira notes till Dec 31st, 2023.

“The CBN at a Bankers Committee meeting yesterday (Sunday) directed Banks to resume acceptance in compliance.

“I urge all businesses in Lagos to accept the old notes as it is legal tender.

“Anyone rejecting these notes will be heavily sanctioned as we kick off monitoring.

“If a bank refuses to accept deposits of old notes, please lodge a complaint with LASCOPA on 08124993895.

“The Lagos State Government will report the bank to the CBN and immediately shut down the offending branch.

“I assure you that this too shall pass as the authorities are working to ensure that the teething problems of the redesigning of our currency are resolved.

Meanwhile, according to the Presidency, in a statement issued, late Monday, ‘at no time did (President Buhari) instruct the Attorney General and the CBN Governor to disobey any court orders involving the government and other parties.’

It would be recalled that the Supreme Court had first ruled on February 8 and again on February 15 asking the CBN to continue using the old banknotes 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.

Again, 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.

Responding to what it described as ‘some public concerns that President Muhammadu Buhari did not react to the Supreme Court judgement on the issue of the N500 and N1,000 old currency notes,’ the Presidency claimed that ‘since the President was sworn into office in 2015, he has never directed anybody to defy court orders.’

“Presidency wishes to react to some public concerns that President Muhammadu Buhari did not react to the Supreme Court judgement on the issue of the N500 and N1,000 old currency notes, and state here plainly and clearly that at no time did he instruct the Attorney General and the CBN Governor to disobey any court orders involving the government and other parties.

“Since the President was sworn into office in 2015, he has never directed anybody to defy court orders, in the strong belief that we can’t practise democracy without the rule of law, and the commitment of his administration to this principle has not changed.

“Following ongoing intense debate about the compliance concerning the legality of the old currency notes, the Presidency therefore wishes to state clearly that Pres. Buhari has not done anything knowingly & deliberately to interfere with or obstruct the administration of justice,” the statement read.