Breaking: Supreme Court Directs Federal Government to Allow Old Naira Notes in Circulation Until December 31, 2023

In a recent ruling, the Supreme Court has instructed President Muhammadu Buhari’s government to permit the continued use of old N200, N500, and N1,000 notes until December 31, 2023. The court also declared the Federal Government’s naira redesign policy as unconstitutional, as it was implemented without consulting the National Security Council and National Economic Council, as required by the 1999 Constitution.

On Friday, March 1, 2023, Justice Emmanuel Agim delivered the lead judgement and dismissed the preliminary objections raised by the defendants, including the Attorney General of the Federation, Bayelsa, and Edo states. The court held that it has jurisdiction to hear the case, citing Section 23(2)1 of the constitution, which states that disputes between the federal government and states must involve law or facts.

The Supreme Court also noted that President Muhammadu Buhari had acknowledged in a broadcast that the policy was flawed and faced numerous challenges. The court observed that the policy had pushed some individuals to resort to trade by barter as a means of survival in this modern age, and that the President’s disregard of the February 8 order was indicative of dictatorship.

The suit challenging the legality of the policy was brought by 16 states of the Federation, including Kaduna, Kogi, and Zamfara, and was set as the first case on the court’s docket for a final verdict. The justices, led by Justice John Inyang Okoro, had previously scheduled the decision to be announced on February 22.

The 16 states are seeking to have the policy declared null and void, citing its adverse effects on innocent Nigerians.

The 16 states accused President Muhammadu Buhari of infringing upon the responsibilities of the Central Bank of Nigeria (CBN) by initiating and executing the policy and requested that the directive issued by the President be invalidated.

The Federal Government, on the other hand, contested the jurisdiction of the Supreme Court, arguing that the CBN was not included as a party and that the disagreement over the policy should be directed towards the CBN, so that the case can be referred to the Federal High Court.