Nigerian Supreme Court Nullifies Ban on Old Banknotes, Extends Validity Until Year End
In a landmark ruling on Friday, the Supreme Court of Nigeria declared the ban on the use of old N200, N500 and N1000 banknotes as legal tender null and void.
The seven-member panel of Justices unanimously held that the old banknotes should remain valid legal tenders until December 31 and be used alongside the redesigned currencies.
The court faulted President Muhammadu Buhari for introducing the demonetization policy without consulting the relevant stakeholders, such as the Council of States, Federal Executive Council, and Civil Society.
In a lead judgment delivered by Justice Emmanuel Agim, the apex court accused President Buhari of disobeying its interim order that halted the full implementation of the new monetary policy.
The decision comes as a relief to many Nigerians who have been struggling to adjust to the new currency regime since the policy was introduced in 2019.
The old banknotes had been widely used and accepted before the ban, causing confusion and hardship for people who were suddenly unable to use them.
The court's decision has been welcomed by various stakeholders, including civil society organizations and the Nigerian Labour Congress.
However, some experts have criticized the ruling, arguing that it could lead to a resurgence of corruption and money laundering, as the old banknotes are easier to counterfeit and use for illegal activities.
Despite these concerns, the court's decision is final and binding, and the old banknotes will continue to be legal tender until the end of the year.
The Central Bank of Nigeria has been instructed to work with relevant stakeholders to ensure a smooth transition to the new currency regime and prevent any adverse effects on the economy and financial system.
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