In a fresh move, the Federal Government has submitted an application to the Supreme Court, seeking an extension of the validity period for the redesigned old naira notes, including N200, N500, and N1,000 banknotes, until 2024.
The redesigned naira notes by the Central Bank of Nigeria (CBN) were initially slated to cease being legal tender on December 31, 2023. The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, SAN, outlined the following requests in the application to the Supreme Court:
- An order reviewing the consequential order in the judgment of March 3, 2023, which stipulates that the old N200, N500, and N1,000 notes should be legal tender until December 31, 2023.
The Federal Government justified its request by expressing concerns that a refusal by the Supreme Court to extend the circulation period of the old notes could lead to a potential national, economic, and financial crisis. The government cited the challenges faced during the initial implementation of the naira redesign policy earlier in the year as a precedent.
The application also proposed that if the court rejects the extension, the old notes should continue to coexist with the new notes until consultations with relevant stakeholders are completed.
While the Central Bank of Nigeria (CBN) had previously postponed the phase-out of the redesigned old naira notes indefinitely, the federal government is seeking a definitive pronouncement from the Supreme Court, emphasizing the existing court order.
The Federal Government underscored ongoing engagements with the 10 plaintiff states, representing members of the National Council of State and the National Economic Council. The 10 states initiated the legal action in the interest of the public, resulting in a judgment extending the circulation of the old notes until December 31.
The Supreme Court has scheduled a hearing for November 30.
