Old Naira banknotes remain legal tender in Lagos – Gov. Sanwo Olu

Lagos Governor, Babajide Sanwo-Olu, Monday, 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 also 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.’

The Lagos Governor’s directive follows a similar order by his counterpart in Anambra, Prof Charles Soludo, who earlier Monday, had told residents to continue using the old Naira notes in line with the ruling of the Supreme Court on the matter, and also on the positive signals from the CBN.

This is also as the Presidency stated, late Monday, that President Muhammadu Buhari did not instruct Governor of the Central Bank of Nigeria (CBN), Mr Godiwn Emefiele and the Attorney General of the Federation and Minister of Justice, Mr Abubakar Malami SAN, to disobey the ruling of the Supreme Court on the use of the old Naira banknotes.

“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.

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 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.

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.

The CBN has yet to confirm the directive.

Meanwhile, according to the Presidency, in a statement issued, 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.

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.”