INSTANT NEWS

The Supreme Court has ruled that both the old and redesigned Naira banknotes will continue to be valid legal tender in Nigeria beyond December 31. The court, led by Justice Inyang Okoro, issued this order, stating that the banknotes should stay in circulation until the Federal Government, after due consultation with relevant stakeholders, decides on the matter. The ruling follows an application moved by the Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi, SAN, on behalf of the federal government. Earlier, on March 3, the court nullified the ban on old N200, N500, and N1000 banknotes as valid legal tenders, allowing their use alongside redesigned currencies until the end of the year.

In its lead judgement, the Supreme Court criticized the Federal Government for introducing the demonetization policy through the Central Bank of Nigeria without proper consultation with relevant stakeholders. The court emphasized that the government failed to provide valid notice to federating units before withdrawing old banknotes. The court held that the notice given, conveyed through press remarks by the CBN governor, did not meet the requirements of "reasonable notice" as per the CBN Act. Additionally, the court invalidated President Buhari's directive, accusing him of disobeying its interim order to keep old banknotes in use until the case's determination.

The Supreme Court stressed that the President's actions, in banning the old banknotes, were contrary to democratic governance and indicated disobedience to its previous order. As the administration led by President Bola Tinubu sought an indefinite extension beyond the December 31 deadline, the Supreme Court reaffirmed the continued validity of both old and new Naira notes.