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Supreme Court faults CBN naira redesign policy, says old notes remain legal tender

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The Supreme Court on Friday nullified the naira redesign policy of the Central Bank of Nigeria (CBN) which has thrown the nation into economic chaos in the last few weeks.

The apex court stated that the policy was an affront on the 1999 constitution of the country, and thereby ordered that the old N200, N500 and N1000 notes remain in circulation till December 31, 2023.

Read also:Six States approach Supreme Court to nullify INEC’s declaration of Tinubu as president-elect

The ruling therefore restrained President Muhammadu Buhari and the CBN, from a full implementation of the naira redesign policy.

In its ruling on the suit filed by 16 states spearheaded by Governors Nasir El-Rufai of Kaduna State along with his Zamfara and Kogi States counterparts, Bello Matawalle and Yahaya Bello, the court issued a restraining order on Buhari, stopping him from withdrawing the old N200, N500 and N1000 banknotes in circulation.

In the judgement read by Justice Emmanuel Agim, the apex court said the President “did not follow the provisions of the constitution before implementing the policy.”

The court also noted that the President and the CBN failed to consult the National Security Council and National Economic Council before implementing the policy.

The court therefore ruled that the old and the new banknotes should be allowed to be in circulation until December 31, 2023.

The originating suit challenging the policy was instituted against the Federal Government and the CBN by Governors of Kaduna State, Malam Nasir El-Rufai and his Zamfara and Kogi States, Bello Matawalle and Yahaya Bello respectively, demanding the February 10 deadline that was set by the CBN to end the legal tender status of the old notes be extended.

At the first hearing before Justice John Okoro on February 15, states like Lagos, Rivers, Cross River, Ogun, Ekiti, Ondo and Sokoto, joined in as co-plaintiffs while Bayelsa and Edo States were joined as respondents on behalf of the Federal Government.

The number of states which joined as co-plaintiffs, gradually rose to sixteen as more states indicated their willingness to be a part of the case.

During the preliminary hearing, the Supreme Court, a panel of seven justices, led by Justice Okoro, adjourned the case to Wednesday February 22, before another adjournment to March 3, where the final ruling was made.

In the heat of the debate, Buhari, in a speech on February 16, gave a directive that the old N200 notes would be reissued to run alongside the newly designed notes, in a bid to douse tension caused by the policy.

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