Naira Crisis: Why CBN Bowed to Pressure of Reissuing old N500, N1000 Notes

By Starrys Obazei | March 14, 2023
starrys@ddnewsonline.com.

The biting crisis of the scarcity of naira notes that made the currency the costliest item in Nigeria has finally ended.

The Central Bank of Nigeria, CBN, gave the real reason it succumbed in a statement, Monday, through the bank’s Acting Director of Corporate Communications, Isa AbdulMumin.

The CBN has said that in compliance with the tradition of obeying court orders, the old N200, N500, and N1000 banknotes remain legal tender till December 31, 2023, as stipulated by the Supreme Court.

“In compliance with the established tradition of obedience to court orders and sustenance of the Rule of Law Principle that characterised the government of President Muhammadu Buhari, and by extension, the operations of the Central Bank of Nigeria (CBN), as a regulator, Deposit Money Banks operating in Nigeria have been directed to comply with the Supreme Court ruling of March 3, 2023.

“Accordingly, the CBN met with the Bankers’ Committee and has directed that the old N200, N500 and N1000 banknotes remain legal tender alongside the redesigned banknotes till December 31, 2023.

“Consequently, all concerned are directed to conform accordingly,” the statement said.

Recall the highest court of the land had on March 3 ordered that old N200, N500 and N1000 notes remain valid till December 31, 2023.

This was after 16 states of the Federation instituted a suit to challenge the legality or otherwise of the introduction of the naira policy.

The 16 states led by Kaduna, Kogi and Zamfara had prayed to the apex court to void and set aside the policy on the ground that it is inflicting hardships on innocent Nigerians.

The Supreme Court subsequently ruled that the President’s disobedience of its February 8 order is a sign of dictatorship, adding that Buhari breached the Constitution of the Federation in the way he issued directives for the re-designing of the Naira by the CBN.

After the March 3 judgment by the Supreme Court, the Presidency, CBN and the AGF kept mum, throwing many bank customers and Nigerians into confusion as the ruling of the apex court contradicted the directive of the President on February 16 that old N500 and N1000 notes are banned and old N200 notes remain valid till April 10.

However, the Presidency broke its silence on Monday, saying the President never told the CBN and the AGF not to obey the order of the apex court.

“This is a case of return to reasonableness and subsequently normalcy.

“We thank God that Baba Buhari has now realized that CBN governor, Emefiele and Attorney-general of the Federation, Malami, deceived him with their bad advice,” a 70-year-old bank customer anonymously told DDNewsonline.com.