The Use of Old Naira Notes is now till further notice as the Supreme Court, on Wednesday, ruled that the old Naira denominations of N200, N500, and N1,000 notes continue to co-exist with the new notes till further notice.
The court has maintained that the old and new notes should remain as legal tender beyond December 31 until the Federal Government puts a process in place for their replacement or redesign after due consultation with relevant stakeholders.
The apex court had, on March 3, restrained the Central Bank of Nigeria from giving effect to the deadline on the use of old notes.
However, the CBN, on November 14, extended the validity of the old N200, N500 and N1,000 notes indefinitely.
This is the second time now that the Supreme Court has extended the lifespan of the old naira notes following a botched currency redesign policy of the Central Bank of Nigeria (CBN).
In October last year, the CBN began the currency swap policy that caused monumental hardship for Nigerians nationwide.
Many state governments sued the federal government to ease the difficulties, urging the Supreme Court to reverse the monetary policy.
Meanwhile, the CBN, on Wednesday, directed all its branches nationwide to continue to issue and accept all denominations of Nigerian banknotes, old and re-designed, to and from deposit money banks.
Are there not enough new naira notes to circulate?
Lateef Fagbemi, the attorney-general of the federation (AGF) recently cited that the nation has not been able to print a significant amount of new notes enough to phase out the old currency before the 31st December deadline.
The AGF said,
“Since the said consequential order was made, the federal government in compliance with this honorable court’s order directed the CBN to engage and has been engaging the respondents in their capacities and their capacities as members of the National Council of State and National Economic Council concerning the naira redesign policy.
“In between the time the order was made and now, there was a presidential election in the country which has led to a transition from the immediate past government and the incumbent government which is just settling down.”
Use of Old Naira Notes: Currency in Circulation Hits All-Time High, Returns to Pre-Naira Redesign Periods
Data from the Central Bank of Nigeria has shown that the currency in circulation in Nigeria has increased to N2.299 trillion in October 2023, the highest since this year.
The amount represents 115.10% compared to the N1.39 trillion recorded in January this year and 8.33% higher than the N2.76 trillion in September.
In October last year, the apex bank withdrew the old N200, N500, and N1000 notes from circulation. It issued new designs, resulting in a temporary decline in currency in circulation as Nigerians exchanged their old naira notes for new ones.
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