Supreme Court says all old naira notes are valid till December 31, 2023

By: Damian Okonkwo

In a landmark ruling last week, the Supreme Court of Nigeria declared that all old naira notes including the N200, N500, and N1000 notes will remain valid legal tender until December 31, 2023. The apex court has also nullified the naira redesign policy, which was aimed at replacing the old notes with new ones.

The court's decision was announced on Thursday in Abuja by a panel of judges led by Justice Kudirat Kekere-Ekun. The ruling comes after a long legal battle between the Central Bank of Nigeria (CBN) and some concerned Nigerians who argued that the policy to demonetize old notes was unconstitutional and would cause economic hardship.

The CBN 2021 announced its intention to phase out old naira notes and introduce new ones with enhanced security features to curb counterfeiting and other illegal activities. The policy was initially slated to take effect on January 1, 2022, but was later extended to June 30, 2022, and then to December 31, 2022.

However, some Nigerians challenged the policy in court, arguing that it violated their constitutional rights to own property and conduct business. They also argued that the CBN had not provided adequate notice or justification for the policy, and that it would disproportionately affect the poor and rural communities who rely on cash transactions.

The Supreme Court has now sided with the plaintiffs, stating that the CBN did not follow due process in implementing the policy and did not provide sufficient public notice and education on the implications of the policy. The court also noted that the CBN had not adequately considered the impact of the policy on the Nigerian economy and its citizens.

The court's ruling means that all old naira notes will remain legal tender until the end of the year, after which they will be officially demonetized. The CBN has been directed to ensure that there is sufficient public awareness and education on the process of demonetization and the introduction of new notes.

The Supreme Court's decision is expected to bring relief to many Nigerians who had expressed concerns about the impact of the demonetization policy on their livelihoods. It is also a reminder of the importance of due process and transparency in policy-making, especially when it comes to issues that affect the daily lives of citizens.