Old N200 notes remain legal tender until April 10 – Buhari

President Muhammadu Buhari has approved re-introduction of the old N200 note as legal tender in the country, alongside the new N200 note until April 10, this year.

President Buhari who was, however, silent on the fate of the old N500 and N1000 notes, said the approval for the co-existing of the old and new N200 was also as a result of wide consultations with relevant stakeholders.

It would be recalled that the National Council of State had also earlier recommended to the Central Bank the need to allow for the co-existence of the old and new Naira notes in view of the latter’s inability to adequately meet the demands of the country, which they said was responsible for the prevailing scarcity of the currencies.

Amid the cash crunch, the Presidency, had Tuesday, dismissed as false claims that the Federal Government or the Central Bank of Nigeria (CBN) had refused to recognise the old N200, N500 and N1,000 notes as legal tender despite a Supreme Court ruling.

Mr Garba Shehu, the Senior Special Assistant to President Buhari, in a statement, however, said both the government and the CBN only took ‘a preemptive action’ in discontinuing use of the old notes ‘view of the pendency of the case before the Supreme Court.’

”We wish to state that it is not true that the Federal Government or the Central Bank of Nigeria, CBN have taken a preemptive action on the legality of currency as a legal tender in view of the pendency of the case before the Supreme Court.

”The position of the government and the CBN will be made known upon the determination of the suit coming up tomorrow (Wednesday).”

Angry protesters ent gone on rampage across the country, including Oyo, Delta, Ogun and Edo states destroying valuable property belonging to some commercial banks, over continued scarcity of the new Naira notes put in circulation by the Central Bank of Nigeria (CBN).

President Buhari, who gave the fresh approval in a nationwide broadcast, Thursday in Abuja, said the approval was necessitated by the need to cushion the hardship experienced by citizens following the implementation of the new monetary policy of the Central Bank of Nigeria (CBN).

”I similarly consulted widely with representatives of the State Governors as well as the Council of State. Above all, as an administration that respect the rule of law I have also noted that the subject matter is before the court of our land and some pronouncements had been made.

”To further ease the supply pressure particularly to our citizens, I have given approval to the CBN that the old N200 bank note be released back into circulation and that should also be allowed to circulate as a legal tender with the new N200, N500 and N1,000 bank notes for 60 days from Feb. 10, 2023 to April 10, 2023 when the old N200 ceases to be legal tender.

”In line section 20 sub-section 3 of the CBN Act 2007, all the existing old N1,000 and N500 notes remain redeemable at CBN and designated points.”

The president, who listed the advantages of the ongoing financial reforms embarked upon by the apex bank, challenged the citizens to make their deposits of the old notes by taking advantage of the platforms and windows being provided by the CBN.

According to him, he has since directed the CBN to deploy all legitimate resources and legal means to ensure that citizens are adequately educated on the new policy, enjoy easy access to cash withdrawal through availability of appropriate amount of currency and ability to make deposits.

He also directed the CBN to intensify collaboration with anti-corruption agencies in checking the activities of those who were bent on sabotaging the smooth implementation of the new Naira redesign policy.

He reassured that government would continue to assess the implementation of the policy with a view to ensuring that Nigerians are not unnecessarily burdened while urging the CBN to ensure the availability of the new Naira notes across the country.

The president, who called for more understanding from the citizens, reiterated the commitment of his administration to handover a financially stable economy to the incoming administration on May 29, 2023.

It would be recalled that last Wednesday, February 8, the Supreme Court while ruling on the suit filed by the three state governors of Zamfara, Kogi and Kaduna, on February 3, against the Federal Government’s Naira swap policy, ordered halt of the planned implementation by the Central Bank of Nigeria (CBN) of a February 10 deadline for the old 200, 500 and 1000 Naira notes to stop being legal tender in the country, pending final determination of the subsisting suit in the court.

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

At the resumed hearing, Wednesday, February 15, a seven-man panel of Justices led by Justice John Okoro 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.

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.

Justice Okoro told counsel to Mr Abubakar Malami SAN, the Attorney General of the Federal (AGF), Kanu Agabi SAN to advise his client to ensure the availability of currency for the people.

“Tell your client to let people have money. If they go to the ATM and the plaintiffs will come and withdraw the case. Make money available to the poor masses.

“You should know that a hungry man is an angry man. I say no more,” he said.

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.

The scarcity is also compounded by refusal of commercial banks to accept the old notes from depositors, even as the currencies were subject of rejection in the open market across the country, including public and private offices.

However, justifying the action of the CBN, its Governor, Mr Godwin Emefiele, blamed the country’s politicians for the scarcity of the new naira notes already put in circulation by the bank.

Speaking while briefing members of the Diplomatic Corps on the Naira redesign, earlier Tuesday, in Abuja, at the Ministry of Foreign Affairs, Mr Emefiele also called for understanding of the foreign community, as he warned against hoarding of currency notes, further cautioning that law enforcement agencies will arrest those who disrespect the Naira.

“The CBN has noticed that some politicians are buying the new notes and storing them for political purposes.

“We have also noticed that some Nigerians are capitalising on the transition to charge exorbitant fees or demand cash payment on the false pretext that PoS don’t work, especially at petrol stations.

“These selfish actions for personal monetary gain are creating hardship for Nigerians and may come at the expense of fellow citizens’ lives and livelihood.

“We have noticed that some members of the public are hoarding the new notes thereby restricting their flow through the economy.

“Cash kept at home will not circulate but may fuel a perception of scarcity which leads to higher demand for the currency, signalling to those who don’t have an urgent or immediate need to store cash.”

The CBN Governor stated further that there is tremendous tension and elevated agitation by leaders who should be calming the frayed nerves of the citizens.

“We believe that a large proportion of these agitations are staged and sponsored propaganda or an exaggeration of the reality. No doubt that there are pockets of pressure in some areas, and the CBN is working hard to shift resources to those areas in order to ease the tension.

“The situation is substantially calming down since the commencement of the Over-the-Counter payments to compliment ATM disbursements and the use of super agents,” Emefiele said.

Already, 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.’

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,” Sanwo-Olu said.