Supreme Court reverse CBN policy on naira notes

Supreme Court of Nigeria don reverse di CBN policy on new notes.

Di apex court deliver di judgement afta dem bin adjourn di case wey challenge di federal goment implementation of di naira swap policy wey some state goments bring before am.

For di lead judgement by Justice Emmanuel Agim, court rule say di old 1000, 500 and 200 naira notes go run till 31 December, 2023.

Di court also add say "di cash limits no fit dey justified and di disobedience of court order by di president na sign of failure of our democracy."

Di apex court hold say even though President Buhari get executive power im go against di constitution as im no consult di Federal Executive Council, di National Economic Council before im give di directive.

Justice Emmanuel Agim add say di president for im national broadcast admit say di implementation of di policy dey cause hardship to Nigerians.

E add say president no give notice of di naira redesign through formal means like National Broadcast but 'mere' press release from CBN wey no be formal way goment suppose take inform citizens of a new policy.

On mata of di cash withdrawal limit, court say "di President directive dey silent on dia ability to print new notes for im broadcast. Di cash withdrawal limit no dey justified."

For di last hearing wey hold on di 22 February, all di plaintiffs for di naira redesign policy mata bin pray di court to dismiss all di preliminary objections for dia originating summons.

Dem also pray di court to deny di defendants sake of say dem disobey court order.

Na Kaduna, Zamfara and Kogi state goments bin first approach di apex court to sama suit against di federal goment to overturn di Central Bank of Nigeria deadline for di withdrawal of di old N1,000, N500 and N200 naira notes from circulation.

For di hearing on Wednesday, six oda states wey include Lagos, Ekiti, Osun, Katsina, Ondo and Cross Rivers join di plaintiff, while Bayelsa and Edo states join in support of di goment and CBN as respondents.

As e dey take im arguments on di last hearing, counsel for di federal goment, Kanu Agabi, say di apex court no get jurisdiction to hear di suit as di action no fit start wit an originating summons.

How di mata bin waka for Supreme court

Last week Wednesday, di seven-man panel of judges wey Justice John Okoro dey lead say dem go hear di consolidated suits wey govnors of nine states file.

Wen im dey address di court, im give assurance say di court no go lose sight of di case and im intention as e affect di suffering of Nigerians.

Govnor Yahaya Bello of Kogi state, and im counterpart for Kaduna state, Nasir El-Rufai bin also show face for court for di hearing .

For di last hearing, di court bin temporarily suspend di implementation of di 10 February deadline of di CBN from making di old N200, N500 and N1,000 notes legal tender.

Counsel to di plaintifs, Abdulhakeem Mustapha say both currencies still remain legal tender for di kontri and if CBN do oda wise, e go mean say dem dey go against di Supreme Court.

How di case take start

Di Central Bank of Nigeria (CBN) bin extend di deadline for di swap of old N200, N500, and N1,000 from January 31 to February 10 afta plenty Nigerians complain say di new naira note scarce and dem don also deposit dia old naira notes, wey make dem dey cashless and e dey affect dia daily living.

Sake of di naira scarcity, some states carry di Nigeria goment go court to challenge di deadline and di Supreme Court, afta one suit wey di states file rule say make di federal goment, di CBN, commercial banks no continue wit di February 10 deadline pending di determination of a notice in respect of di issue on February 22.

However, President Muhammadu Buhari, for national broadcast last week Thursday bin direct di apex bank to release old N200 notes into circulation to co-exist wit di new N200, N500 and N1,000 banknotes for 60 days - by April 10, 2023. He also say old N500 and N1,000 banknotes don cease to be legal tender for Nigeria.

Wetin scarcity of cash dey cause

Nigerians belle no dey sweet dem at all sake of di new CBN policy wey don make cash scarce well.

Di policy cause kata-kata for many parts of di kontri as some banks dey hide di new naira notes and customers no see both new and old naira notes collect for counter and ATMs.

Dis scarcity don make customers para well well sotay dem use vex begin attack banks and stage protests for some parts of di kontri.

For Warri, Delta State, one video show wia bank customers dey escape through di back fence sake of angry customers wey no see cash collect.

Oda videos show some bank customers dey naked diasef to protest sake of say dem no see moni collect for bank.

Oda videos show ATMs wey angry customers destroy for Abeokuta Ogun state sake of dia lack of access to cash.

Nigerians dey find am difficult to access cash and some photos wey don go viral even show di old N200 notes wey banks don dey recirculate no no dey in good shape

Evribody dey wait for di Supreme Court ruling to hear wetin di seven man panel go tok.

Why CBN roll out new naira notes

Di Central Bank of Nigeria Oga Godwin Emefiele bin tok say di CBN bin dey face problem wit di management of di current series of banknotes wey dey circulation, especially di ones wey dey outside di banking system for Nigeria.

Emefiele say one of di challenges na say members of di public dey hoard banknotes. E follow tok say statistics show say ova 80 percent of currency wey dey for circulation dey outside di vaults of commercial banks.

Anoda challenge na say dirty and unfit banknotes dey for circulation and dis one dey give CBN bad image and e dey increase risk of financial instability.

CBN also tok say di currency wey dey for circulation dey increase risk of fake notes.

"For recent years, di CBN don record significantly higher rates of counterfeit especially for di higher denomination of N500 and N1,000 banknotes," Emefiele tok.

E say according to global best practice, central banks suppose dey redesign, produce and circulate new currency every 5–8 years, but CBN neva redesign di naira for di past 20 years.