The Supreme Court has declared that both the old and redesigned Naira banknotes will continue to be recognized as valid legal tenders in Nigeria beyond the stipulated December 31 deadline.
The seven-man panel, led by Justice Inyang Okoro, issued the directive, stating that the banknotes should remain in circulation until the Federal Government, in consultation with relevant stakeholders, decides on the matter.
The ruling followed an application presented on behalf of the federal government by the Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi, SAN.
The court had previously nullified the ban on the use of the old N200, N500, and N1000 banknotes as valid legal tenders by the President Muhammadu Buhari-led administration on March 3.
Justice Emmanuel Agim, delivering the lead judgment, criticized the government for unilaterally introducing the demonetization policy without consulting key stakeholders.
The court emphasized that the old Naira notes should coexist with the redesigned currencies until a decision is reached after due consultation.
The Supreme Court also faulted the manner in which the demonetization policy was introduced, noting that the government failed to provide valid notice to all federating units and relevant stakeholders.
It highlighted that the purported notice through press remarks by the governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, did not meet the criteria of “reasonable notice” as required by the CBN Act.
Furthermore, the court invalidated President Buhari’s directive in a broadcast on February 16, allowing only the old N200 note to remain legal tender until April 10.
The court accused the President of disobeying its interim order issued on February 8, which directed the old banknotes to remain in use until the case was determined.
The court asserted that the President’s actions were contrary to democratic governance and, as a result, the Federal Government lost its right to be granted an audience before the Supreme Court.
With the conclusion of the last administration, the government led by President Bola Tinubu reapplied to the Supreme Court for an indefinite extension of the December 31 deadline.