The Supreme Court has delivered its judgment in a suit brought against the Federal Government over the naira redesign policy.
In passing its judgment on Friday, the apex court ruled that the old notes – N200, N500 and N1000 – remain legal tender till 31st December, 2023.
The Supreme Court ordered the circulation of the old naira notes alongside the new ones until December 31.
In a unanimous judgment, a seven-member panel of justices presided by Justice Inyang Okoro, held that the directive by President Muhammadu Buhari to the Central Bank of Nigeria (CBN) for the redesigning and withdrawal of old notes of N200, N500 and N1000, without consultation with the states, the Federal Executive Council and the National Council of State, was unconstitutional.
The apex court observed that no reasonable notice was given before the implementation of the policy as provided under the CBN Act.
The lead judgment read by Justice Emmanuel Agim also dismissed the preliminary objection by the federal government challenging the jurisdiction of the apex court to hear the suits by the 16 states challenging the currency policy.
The panel held that the CBN, being an agent of the federal government, need not be joined as a party in the matter.
Recall that, sixteen states of the Federation instituted the suit to challenge the legality or otherwise of the introduction of the policy.
The suit initially instituted by Kaduna, Kogi, and Zamfara states has been slated as the first case on the cause list for a final verdict.
Justice John Inyang Okoro, who led a seven-person panel of Justices of the Court, had on February 22 fixed today for the court to make its decision known on the suit.
The 16 states led by Kaduna, Kogi, and Zamfara are praying the apex court to void and set aside the policy on the ground that it is inflicting hardships on innocent Nigerians.
They accused President Muhammadu Buhari of usurping the function of the Central Bank of Nigeria (CBN) in the introduction and implementation of the policy and asked that the directive issued by Buhari be voided.
On its part, the Federal Government challenged the jurisdiction of the Apex Court on the grounds that the CBN was not joined as a party and that the dispute over the policy ought to be directed at the CBN so that the suit could be referred to the Federal High Court.
Background
The Central Bank of Nigeria (CBN) had extended the deadline for the swap of old N200, N500, and N1,000 from January 31 to February 10 following complaints by many Nigerians, but the Supreme Court, after a suit filed by the states, held that the Federal Government, the CBN, and commercial banks must not continue with the February 10 deadline pending the determination of a notice in respect of the issue.
However, President Muhammadu Buhari, in a national broadcast last Thursday, directed the apex bank to release old N200 notes into circulation to co-exist with new N200, N500, and N1,000 banknotes for 60 days—by April 10, 2023. He also said old N500 and N1,000 banknotes cease to be legal tender in Nigeria.
There has been a flurry of reactions and stark criticisms against the president’s directive, including from governors of his party, the All Progressives Congress (APC).
Governors Nasir El-Rufai (Kaduna), Abubakar Badaru (Jigawa), Rotimi Akeredolu (Ondo), and Umar Ganduje (Kano); Speaker of the House of Representatives, Femi Gbajabiamila; Minister of State for Labour and Employment, Festus Keyamo; and many stalwarts of the ruling APC have openly censured and faulted the president’s directive, arguing that it has no grounds because the case is before the
Leading senior advocates in Nigeria like Femi Falana and Mike Ozekhome have equally faulted the president’s move, saying he cannot overrule the apex court of the land.
Also, three state governors—Kaduna, Zamfara, and Kogi—have filed another suit against Malami and the CBN Governor, Godwin Emefiele, over contempt of court and their alleged failure to comply with the Supreme Court order on the old naira notes.
