The Federal Government has formally requested that the Supreme Court grant an extension to remain in circulation as a legal tender.
Additionally, the government seeks the lifting of the court’s previous order, issued on March 3, which mandated the coexistence of old and new naira notes until December 31.
The Central Bank of Nigeria (CBN) had earlier declared that old N200, N500, and N1,000 banknotes would retain their legal tender status until December 31, 2023.
The government argues that the extension is imperative due to challenges in printing the required volume of new notes, making it difficult to phase out the old currency by the initial deadline.
The application, submitted by the Attorney-General of the Federation, Lateef Fagbemi, outlines the following reliefs sought from the Supreme Court:
A review of the court’s consequential order from the judgment on March 3, 2023, allowing the old 200, 500, and 1,000 naira notes to remain legal tender until December 31, 2023.
The Federal Government emphasizes the potential risks of not extending the circulation period, warning of the likelihood of a national, economic, and financial crisis reminiscent of the challenges faced earlier in the year during the implementation of the naira redesign policy under the former Central Bank Governor, Godwin Emefiele.
Expressing the need for further consultations with stakeholders, the government implores the Supreme Court to permit the continued use of both old and new notes until an informed decision is reached.
It highlights the emerging concern of hoarding, suggesting that the economy may face renewed threats if the December 31 deadline is maintained.
The government claims ongoing engagement with the 10 plaintiff states, representing members of the National Council of State and the National Economic Council, in an effort to address the situation.
The Supreme Court has scheduled a hearing for November 30 to deliberate on the government’s appeal.