The Lagos State Governor, Babajide Sanwo-Olu, has asked businesses, and traders to accept the old N500 and N1,000 notes in line with the recent Supreme Court judgment that they remain legal tender until December 31, 2023, saying it is illegal to reject them.
This was made known in a statement issued by the Lagos State Commissioner for Information and Strategy, Gbenga Omotosho, on Sunday night, March 12, 2023.
Omotosho said that the Lagos State Government has noted the hardship caused by the naira redesign policy of the Central Bank of Nigeria (CBN), which has affected businesses and commercial activities.
No reason to reject old notes
The commissioner said that no reasonable notice as required by law was given, noting that the public only became aware through press remarks, which cannot qualify as a public notice.
He insisted that the naira redesign policy has impeded the functions of the state government.
The statement from Omotosho reads, ‘’The Lagos State Government has noted the hardship sparked by the Naira redesign policy, which has affected business and commercial activities.
- ‘’There is no reason to reject the old notes, going by the Supreme Court judgment delivered on March 3, 2023.
- ‘’The apex court declared that “no reasonable notice was given as required by Section 20(3) of the CBN Act,” noting that the public only became aware of the policy through press remarks, which cannot qualify as a notice to the public.
- The court maintained that the policy has impeded the functions of State governments, pointing out that the directive that stops the use of the old notes is illegal, unconstitutional, null and void.
- ‘’Governor Babajide Sanwo-Olu has, therefore, called on business owners, especially retailers, to accept the old N500 and N1,000 notes – in line with the Supreme Court judgement that the currency remains legal tender until December 31, 2023. It is illegal to reject the notes.
- ‘’All agencies of the Lagos State Government are advised not to reject payments made with the old currency by the public.”
For catch up
- The Central Bank of Nigeria (CBN) had on October 26, 2022, announced its plan to redesign the N200, N500, and N1,000 notes. President Muhammadu Buhari subsequently unveiled the redesigned notes on November 23, 2022, while the apex bank fixed a January 31 deadline for the validity of the old notes.
- The CBN had on January 29, 2023, extended its January 31 deadline to February 10, 2023, after bowing to pressure following pleas from Nigerians and stakeholders.
- The Supreme Court had in a ruling on March 3, in a suit filed by Kaduna, Kogi, and Zamfara State Governments and later joined by several other states, ordered that the Old N200, N500, and N1,000 notes remain in circulation until December 31, 2023.
- The apex court nullified the naira redesign policy of the CBN, declaring it as an affront to the 1999 constitution.
