‘It is against the law to reject old Naira notes’ – Lagos Gov warns residents

Lagos Governor, Babajide Sanwo-Olu has warned against rejection of the old Naira notes in the state, as he noted that since the Supreme Court in its earlier ruling on February 8 had stopped the Central Bank of Nigeria from implementing a deadline on its legality, the status quo has not changed even with Wednesday’s position of the apex court.

State Commissioner for Information & Strategy, Mr Gbenga Omotoso, who confirmed this via a statement, Wednesday, quoted the governor as saying that ‘It is against the law to reject the old notes as doing so is contrary to the position of the Supreme Court.’

It would be recalled that the Supreme Court while ruling in the suit brought by three state governors against the federal Government challenging its naira swap policy, insisted that its order restraining the Federal Government from further implementing the Naira swap policy or setting a deadline of February 10 for discontinuation of the old notes through the Central Bank of Nigeria (CBN), still subsists.

The seven-man panel of Justices led by Justice John Okoro, had adjourned the matter to February 22 after hearing arguments from both counsels, as well as ordering the plaintiffs to amend their originating process to reflect fresh co-plaintiffs, who had recently been joined to the suit.

At the hearing of the suit, Wednesday, counsel to the Kaduna, Kogi and Zamfara states, Abdulhakeem Mustapha (SAN) drew the attention of the court that the Federal Government and its agencies have failed to comply with the order halting the implementation of the Naira swap policy and have allegedly directed the rejection of the old notes.

Mustapha said the plaintiff filed a notice of non-compliance with the order of the court order made on February 8, as he demanded that the court take action against the respondent to protect the dignity of the court.

“That order has been flouted by the government. We are talking of executive lawlessness here. We have filed an affidavit to that effect…We want the court to renew the order for parties to be properly guided.”

Responding, Justice Okoro asked Mustapha to file a proper application to put forward his complaints and to enable the respondent respond appropriately, as he stated that there was no need for a renewal of the court’s order.

According to Justice Okoro, since the order made by the court on February 8 was made pending the determination of the motion for injunctions filed by the plaintiff, it still subsists since the motion was not yet heard.

The Lagos Governor, who has also filed an application challenging the Naira swap policy of the CBN, further appealed for calm following widespread protests which rocked parts of Ogun, Edo, Delta and Oyo states in the wake of the CBN declaration of the old notes as non-legal tender.

“Lagos Government wishes to put on record the patience and calmness of Lagosians following the controversy generated by the Naira shortage crisis.

“The State Government has joined the dispute at the Supreme Court, which today adjourned the hearing of the matter till February 22. When the matter first came up on February 8, the apex court said the old notes remained legal tender.

“That position has not changed. The State Government hereby warns those rejecting the old notes to desist from doing so or face prosecution. It is against the law to reject the old notes as doing so is contrary to the position of the Supreme Court.

“Governor Sanwo-Olu urges Lagosians to remain law-abiding and shun mischief makers who may exploit this temporary situation to promote their anti-people agenda. He is confident that the Judiciary will resolve all the issues around the currency shortage crisis.

“To cushion the effect of the Central Bank of Nigeria (CBN) directive on the old notes, especially on the vulnerable among us, Lagos State has started the distribution of the food packs promised by the Governor. The 50% fares slash on all State transportation facilities continues, as directed by Mr. Governor,” the statement read.

Last Wednesday, February 8, the Supreme Court while ruling on the suit filed by the three state governors against the Federal Government’s Naira swap policy, ordered the Federal Government to halt the planned implementation by the Central Bank of Nigeria (CBN) of a February 10 deadline for cessation of the old Naira as legal tender in the country, pending final determination of the subsisting suit in the court.

The plaintiffs (three state governors) had in a motion ex-parte filed on February 3, prayed the court to halt the naira redesign policy of the Central Bank of Nigeria (CBN).

The Supreme Court had in a unanimous ruling on February 8, granted an interim injunction restraining the Federal Government, the CBN and commercial banks from implementing the February 10, deadline for the old 200, 500 and 1000 Naira notes to stop being legal tender.

“After a careful consideration of this ex-parte application, and the grounds in support of same, this court finds that there is real urgency for this court to intervene by the grant of this application.

“Accordingly, this application is hereby granted as prayed.

“That is to say, an order of interim injunction restraining the Federal Government of Nigeria, either by itself or acting through the Central Bank of Nigeria (CBN) and/or the commercial banks, its agents; agencies, corporations, ministries, parastatals, organizations or through any person or persons (natural and artificial) howsoever, from suspending or determining or ending on the 10th of February 2023 the timeframe within which the now older versions of the 200, 500 and 1000 denominations of the naira may no longer be legal tender, pending the hearing and determination of the plaintiffs/applicants’ motion on notice for interlocutory injunction,” the Supreme Court has ruled, last Wednesday.

The Supreme Court then fixed February 15 to hear applications by the Federal Government and other parties.

However, despite ruling that the Federal Government, CBN and commercial banks must not continue with the deadline pending the determination of a notice in respect of the matter, the regulatory bank after the February 10 deadline it set, proceeded to declare the old Naira notes as non-legal tender, a move which has sparked off protests and riots across parts of the country, including Edo, Oyo and Delta states where commercial banks’ property were destroyed.