Naira redesign: Court bars CBN from extending deadline for use of old naira notes

The Federal Capital Territory (FCT) High Court has barred the Central Bank of Nigeria (CBN) and President Muhammadu Buhari and 27 commercial banks from suspending or interfering with the currency redesign terminal date of February 10 or issuing any directive contrary to the said date.

The court in its order restrained the CBN from extending the deadline on the use of old naira notes.

In a motion by 5 political parties, Justice Eneojo Eneche of the FCT court also granted an order directing the Chief Executive Officers (CEOS) of the banks, to show cause why they should not be arrested and prosecuted for the financial sabotage of the country, by illegally hoarding and not disbursing the new N200, N500, and N1000 bank notes, despite the supply of such notes by the central bank.

• The court held, “An order of interim injunction is hereby made restraining the defendants whether by themselves, staff agents, officers, interfacing banks or whosoever not to suspend, stop, extend, vary or interfere with the extant termination date of use of the old N200, N500, and N1000 bank note being 10th day of February 2023, pending the hearing and determination of the motion on notice,”

For the record

The CBN had on January 29, 2023, extended its January 31 deadline for the swapping of old naira notes with the redesigned new naira notes till February 10, 2023, after bowing to pressure last Sunday following many pleas from Nigerians across different walks of life.

Following his meeting with APC Governors, who called for his intervention in the naira scarcity, President Muhammadu Buhari had on Friday, February 3, 2023, asked for a 7-day period to address the problems associated with the exercise as well as take a decision.

Protests are reported to have broken out in various cities across the country, with many angry about the pains and hardship citizens are being subjected to in order to have access to the new notes.

Earlier, 13 political parties out of the 18 political parties in Nigeria have threatened to withdraw from participating in the February 25 and March 11, 2023, general elections, if the Central Bank of Nigeria (CBN) extends the February 10 deadline for the naira swap.

Meanwhile, Kaduna, Zamfara, and Kogi States have dragged the Federal Government to Supreme Court over the scarcity of old and new Naira notes due to the Central Bank of Nigeria (CBN)’s naira redesign policy.

The state governments who said they are worried by the effects the CBN naira redesign policy is having on the residents of their states, are seeking a restraining order by the Supreme Court to compel the government and CBN from implementing the policy.