FG Tables Fresh Request Before Supreme Court Over Old Naira Notes

The Federal Government, led by Bola Ahmed Tinubu, has requested an extension from the Supreme Court to continue issuing outdated naira notes.

Anaedoonline.ng reminds readers that the Supreme Court on March 3, in response to the claims of the ten states, issued an order stating that until December 31, 2023, both the new and redesigned 200, 500, and 1000 Naira notes and their older counterparts will be legal money.

The court also issued an order stating that until December 31, 2023, old 200, 500, and 1000 Naira notes will be accepted and exchanged for new ones.

New Naira: Things To Know About Supreme Court’s Ruling

The federal government is requesting that the Supreme Court revoke its ruling from March 3 stating that both new and old Naira notes should be used as legal cash through December 31 in a new lawsuit filed before the court.

The administration further stated that the need for the extension of time stems from its inability to manufacture enough new notes to completely phase out old money by December 31 due to the economic downturn.

The Federal Government went on to say that if the Supreme Court rejects its request to prolong the period that old notes can be used, the nation could face another financial, economic, and national crisis, similar to the one that occurred in the first quarter of this year when the naira redesign policy was being implemented under former Central Bank of Nigeria (CBN) Governor, Godwin Emefiele.

It pleaded with the court to permit the use of the old notes alongside the new notes until it had consulted with important parties and established all necessary frameworks.

UPDATE: Banks To Start Over-The-Counter Payment Of New Notes

Because some Nigerians have begun hoarding both the old and new Naira notes ahead of the December 31 deadline, it generated concerns that the economy would be harmed.

It acknowledged that it has been interacting with the ten plaintiff states in their roles as members of the National Economic Council (NEC) and the National Council of States.

Ten states—Kaduna, Kogi, Zamfara, Ondo, Ekiti, Katsina, Ogun, Cross River, Lagos, and Sokoto—are the aggrieved parties.

The states of Edo and Bayelsa, as well as the Attorney General of the Federation, are the respondents in this action.

In addition to preventing it from printing new notes, the Supreme Court’s current injunction was allegedly a barrier to the continued use of the N200, N500, and N1,000 old notes.

It was reported that the administration understood that the old notes would no longer be in circulation after December 31 absent a new decision from the Supreme Court.

Buhari Speaks On Naira Redesign Policy And Why He Could Have Escaped Nigeria

In the most recent application, the Federal Government is requesting the following reliefs from Attorney-General of the Federation Lateef Fagbemi (SAN):

•An order of this Honourable Court reviewing or varying its consequential order contained in the judgment in Suit No. SC/ CV/162/2023 delivered on the 3rd day of March 2023 to the effect that the old 200, 500 and 1,000 naira notes should be legal tender until the 31st of December, 2023.

•An order of this Honourable Court varying its consequential order contained the March 3 judgment to the effect that the old 200, 500 and 1,000 Naira notes should be legal tender until 31st of December, 2023.

•An order of this Honourable Court reviewing and or varying the said consequential order to read thus: ” An order that the old versions of 200, 500, 1,000 notes/ currency shall continue to be legal tenders alongside the new or redesigned versions until the government decides to bring the circulation of the old versions to an end… after its consultation with critical stakeholders and after putting all required structures in place.

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•And for such order or further orders as this Honourable Court may deem fit to make in the circumstances.

It was discovered that the Supreme Court scheduled a hearing for November 30.

Mr. A. U. Mustapha (SAN), the plaintiffs’ principal attorney, verified the court’s notice of hearing.

Fagbemi went into great depth on the Federal Government’s decision to file a case with the Supreme Court.

He claimed that a new government had only begun to take shape following the recent presidential election.

According to The Nation, Fagbemi said: “The ground for making the said consequential order by this Honourable Court was that the new 200, 500 and 1000 Naira notes would have been adequately printed and fully circulated by the 31st of December, 2023 so that the recall of the old 200, 500 and 1000 Naira notes would not lead to national, economic and financial crises witnessed when the Naira redesigned policy firstly came into effect in the first quarter of the year.

“Since the said consequential order was made, the Federal Government, in compliance with this Honourable Court’s order, directed the CBN to engage and has been engaging the respondents in their individual capacities and in their capacities as members of the National Council of State and National Economic Council with respect to the Naira redesign policy.

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“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.

“The incumbent government has, however, directed the Central Bank to come up, by a way of policy direction, with how the Naira redesign policy will be addressed in full compliance with the order of this Honourable Court.

“Whilst working on the policy direction and due to the economic crisis being witnessed by the government of the Federation and other factors beyond its control, the government of the federation to date has not been able to print the new 200, 500 and 1000 Naira notes in the equal proportion of the old 200, 500 and 1000 Naira notes sought to be recalled as consultation with critical stakeholders is still on-going on how best to approach the redesign policy.

“People have been hoarding the new notes on the speculation that the 31 December deadline for the old notes to seize to be legal tender may not be met.

UPDATE: Buhari Seeks 7 Days To Decide On Naira Resigned

“To effectively stabilise the economy, the Federal Government is of the strong view that the old versions of 200, 500 and 1,000 notes should continue to be legal tender alongside the new versions.

“Following the deadline for the validity of the old 200, 500 and 1000 Naira notes ordered by this Honourable Court will make the government of the federation to push the country into another national, economic and financial crisis which this Honourable Court sought to prevent in the first instance by its judgment in the afore-mentioned suit.

“The only way to save the nation from both of the above situations is by the order of this Honourable Court to grant the prayers in this application.

“Varying the order of this court will give effect to the intention of the consequential order which is to ensure that the removal from circulation of the old notes is only done when adequate structures have been put in place.

“That first defendant (Attorney-General of the Federation) has discussed the foregoing with counsel to the plaintiffs who have signified his concurrence and her undertaken not to oppose this application in the interest of national peace, security, economy and safety to grant this application.

UPDATE: PDP Governors Open Up Over Plan To Hand Over Party To Tinubu

“The plaintiffs/applicants will not be prejudiced by the grant of this application by this Honourable Court.”

Assistant Chief State Counsel Terhemba Damian Agbe stated in an affidavit supporting the Motion on Notice that Dr. Olayemi Michael Cardoso, the governor of the CBN, has verified that certain Nigerians have begun stockpiling the impacted old and new notes in preparation of the December 31 deadline.

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