Old 500 & 1,000 naira notes still be legal tender?

Di old 500 and 1,000 naira notes don begin dey available now for Nigerians to spend? Dat na di big question wey many residents of di West African kontri don begin ask.

Since di announcement by di Central Bank of Nigeria wey set deadline on use of di old notes in February many pipo still dey reject am.

On Monday, Anambra state govnor Charles Soludo claim say di Central Bank of Nigeria (CBN) don finally direct commercial banks to dispense di old currency and also collect am from customers.

Di southeastern govnor join oda govnors for Nigeria to draw ear give commercial banks for di state to begin dispense and accept di old N1000, N500 naira notes.

While Soludo make di post, di CBN neva deny or confam say dem don give go ahead for di old 500 and 1,000 naira to dey acceptable for di kontri.

Similarly, Lagos state govnor Babajide Sanwo-Olu also join mouth to echo wetin Soludo tok as im tell Lagosians say "e dey illegal to reject di old notes."

Di govnors comments dey come based on di Supreme Court ruling of 3 March 2023 wey ask for di old notes to remain as legal tender until 31 December 2023.

Some bank workers wey we no go name don however confam to BBC News Pidgin say dem don get directive to begin load old notes into dia ATM machines.

"Old naira note now don become fully implemented as legal tender," one banker tok.

Di bank manager add say, "Customers fit now also deposit same as di code to generate am via CBN portal fit work well multiple times now using same BVN.

"So no need to use anoda pesin account deposit your own money again."

Gbenga Omotoso, Lagos state commissioner for information advise all agencies of di state goment say make dem no reject payments wey pipo make wit di old currency.

“Lagos state goment don notice di hardship wey di naira redesign policy don cause wey don affect business and commercial activities.

“Reason no dey to reject di old notes going by di supreme court judgment delivered on March 3, 2023,” e tok.

Meanwhile, Prof Soludo for di announement say Anambra State goment go close di branch of any bank wey no comply for im state.

"Di Tellers for di commercial banks go generate codes wey customers go use deposit di old notes.

"Limit no dey for di number of times an individual or company fit make deposits.

"Di Govnor of di CBN na im give di directive for one Bankers’ Committee meeting wey happun on Sunday, 12 March, 2023," di govnor tok for di statement wey e personally sign.

Prof Soludo say di CBN govnor Godwin Emefiele, "personally confam di above to me during phone conversation on Sunday night."

Im advice residents of Anambra to freely accept and transact dia businesses with di old currency notes (N200; N500; and N1,000) as well di new notes.

Im say make residents report any bank we no no gree accept deposits of di old notes.

Anambra State Goment no go only report di bank to di CBN, but go also immediately shutdown di branch wey no gree comply.

Wetin don happun so far since di naira redesign

Di issue of scarcity of di old and new naira notes don continue to keep Nigerian citizens inside confusion and hardship.

Pipo wey get di old naira notes no dey fit spend am sake of say some Nigerians still dey reject am afta Supreme Court for Nigeria reverse di decision of President Muhammadu Buhari.

Govnors for different states for Nigeria dey try use different method to make pipo for dia states begin accept di old naira notes.

Since di Supreme Court reverse di CBN naira note redesign policy and also extend di use of di old currencies of 500 and 1,000 as legal tender till 31 December 2023, Nigerians dey confused on di status of di old notes.

Both di Nigeria goment and di Central Bank of Nigeria neva tok anytin since di 3 March ruling.

Banks, eateries, filling stations, traders and many oda businesses still no dey gree collect di old 500 and 1,000 notes across di kontri.

Dis development make some state govnors try to step in as dem try to make pipo for dia state to accept di old money.

Govnors like date of Ekiti state, Biodun Oyebanji; Douye Diri of Bayelsa State and Rotimi Akeredolu of Ondo for dia different broadcast and press releases don beg pipo for dia states to collect di old notes so as to reduce di “suffering of di common man."

While govnors like Yahaya Bello of Kogi State and Imo State govnor, Hope Uzodimma accuse pipo wey no gree use di money say dem dey “disobedient” to di Supreme Court judgement.

Di Kogi govnor also threaten to arrest pipo wey no gree collect di old currency and to seal any bank wey no comply wit di order.

Why pipo no gree accept di old notes afta Supreme Court ruling?

The major wahala wey dey face dis govnors appeal and threats for pipo to use di old naira notes dey two.

First, di pipo wey di govnors dey appeal to - banks, filling stations, and eateries - to obey di law, say no be dem di Supreme Court give order to resume di use of old currency, di court order na to federal goment. Meaning say na di president court give order.

Di oda one na say some of dis business like di banks wey dem dey threaten to close, no get power to decide at branch levels say dem wan transact wit old notes becos dem dey under federal regulator wey be di Central Bank of Nigeria (CBN).

Di banks position get bigger implications becos e mean say traders, supermakets, schools plus oda businesses no fit deposit di old notes wey dem collect from customers to dia accounts for banks.

Di third be say, dis govnors no get constitutional power to instruct di pipo on wetin go be legal tender. Dem no get di constitutional backing to enforce di order.

Nigeria Constitution dey very clear about how agencies like di Central Bank of Nigeria suppose operate.

Di law wey establish CBN wey be di Central Bank of Nigeria Act section 1(3) make di bank “independent body in di discharge of im duty.”

For section 20(3) di Act give di CBN di full power to, based on di order of di president, to stop any currency from being legal tender.

“Di bank go get di power, if di president order am to do so and afta e give reasonable notice on dat behalf, to call in any of im notes or coins on payment of di face value and any note or coin wey e bin don give notice under dis Sub-section, go, wen di notice expire, stop to be legal tender.”

So, dis mean say, CBN dey only take order from di president on mata wey concern di currency of di kontri.

According to di CBN Act section 1(2), e possible to sue di bank and di bank fit sue too.

So why for dis particular case e be like CBN no send wetin di Supreme Court order?

Di tin be say, for di case wey three APC govnors of Kaduna, Zamfara and Kogi state carry go court, dem make di case to be between di federal goment and di state goments. CBN name no dey mentioned for di case.

Reason be say, according to di 1999 Constitution of di Federal Republic of Nigeria (as amended) section 25(1d), na only di Federal High Court of Nigeria get power to exercise jurisdiction on mata wey concern di Central Bank of Nigeria.

E mean say di Supreme Court as di highest court for di land suppose send di mata go di appropriate court, in which case CBN for no fit act like say di order to use old notes till December 31 no concern am.

However, dis sections of di law don lead to plenty argument among lawyers as some argue for and odas against.

On 3 March Supreme Court of Nigeria reverse di CBN policy on new notes.

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.

How dis old notes kasala 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 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.