According to local reports, Nigerian financial institutions have begun to abide by a Supreme Court ruling that invalidated the Central Bank of Nigeria’s (CBN) demonetization of the 1,000, 500 and 100 naira notes. According to the court, residents of Nigeria will continue to use the demonetized notes until the end of the year.
Court criticizes outgoing Nigerian president
Nigerian financial institutions have reportedly started dispensing the newly demonetized 1000, 500 and 100 naira notes just days after the country’s highest court ruled against CBN’s so-called naira redesign policy. According to a Bloomberg reportsome of the country’s major financial institutions, including Guaranty Trust Holding Co. Plc and Sterling Bank Plc, were already handing out the old notes on March 6.
In its ruling issued on March 3, 2023, the Nigerian Supreme Court called the central bank’s demonetization process rushed. The court also accused outgoing President Muhammadu Buhari of undermining the country’s democratic credentials after his government failed to comply with an interim order preventing it from continuing the demonetization process.
While the CBN has not issued a formal statement following the Supreme Court ruling, Sterling Bank CEO Abubakar Suleiman is quoted in the Bloomberg report as explaining why the banks chose to comply with the ruling.
“The central bank is abiding by the supreme court ruling, as are the banks. I don’t think we need a directive to obey the court,” the executive was reported as saying.
Demonetized banknotes will remain legal tender until the end of the year
By redistributing the old notes, Nigerian banks will not only comply with the court ruling, but also appease dissatisfied bank customers who failed to withdraw cash in the days leading up to the February 10 demonetization deadline. As Bitcoin.com News previously reported, CBN’s refusal to extend the deadline, as well as the banks’ inability to distribute the newly designed notes, helped spark violent street protests.
Despite pleas from members of his own political party, All Progressives Congress (APC) Chairman Buhari insisted on a televised address that his government still supported CBN’s naira redesign policy and that the demonetization deadline would not be extended. However, in its ruling, the Nigerian supreme court declared that all old naira notes would remain legal tender until the end of the year.
Sign up your email here to receive a weekly update on African news in your inbox:
What are your thoughts on this story? Let us know what you think in the comments section below.
image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
