…Overrules CBN’s cash limit directive to banks
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TheSupreme Court of Nigeria has ordered that the old N1000, N500 and N200 notes remain legal tender until December 31, 2023.
The court, in a judgment on the suit filed against Federal Government’s naira swap policy, held that the old naira notes should co-exist with the new notes.
The court pooh-poohed the directive issued by President Muhammadu Buhari to the CBN governor to limit access to cash and held that it was a grossviolation of the right of the owners of such funds to their property.
It proceeded to set aside the cash limit directive given to banks by the CBN.
The court’s seven-member panel, expressed displeasure that President Muhammadu Buhari failed to obey its February 8 order for parties to allow the old notes to co-exist with the new ones.
It said the conduct was a disrespect of the Constitution and the nation’s democracy, and a drift towards authoritarianism.
The court held that the suit by the states was properly filed and dismissed all the objections raised by the Attorney General of the Federation (AGF), Bayelsa and Edo states.
Recall that the Supreme Court had, on Wednesday, February 8, stopped the Central Bank of Nigeria (CBN) from withdrawing the old Naira notes from circulation as from February 10, as earlier proposed.
The apex court’s ruling was in favour of a suit filed by three APC Governors of Nasir El-Rufai (Kaduna), Yahaya Bello (Kogi) and Bello Matawalle (Zamfara).
The three governors had, in an ex parte motion before the court, sought a temporary order to stop President Muhammadu Buhari administration and the CBN from continuing with the full implementation of the naira redesign policy.
In the motion, the governors asked the court to declare that the demonetisation policy is a violation of the provisions of the Central Bank of Nigeria Act, 2007, the Nigerian Constitution and relevant laws.
They also wanted a declaration that the three-month notice issued by the CBN with authorisation of the President, wherein the older versions of the denominations will lose their legal tender status, is in flagrant violation of Section 20(3) of the CBN Act 2007, which states that reasonable notice must be given.SHARE THIS