The Federal Government under President Bola Ahmed Tinubu has stormed the Supreme Court to seek an extension of the validity of old naira notes beyond the current deadline of December 31, 2023.
Recall that the Supreme Court nullified the ban on using the old N200, N500, and N1000 banknotes as legal tenders earlier in the year.
In light of this, the government wants the apex court to lift its March 3 order that old naira notes should remain legal tender along with new notes till December 31.
It added that an extension of time is necessary because, due to the economic crisis, it has not been able to print the volume of new notes that would enable it to phase out old currency before December 31, 2023.
The Federal Government further explained that should the Supreme Court decline its request to extend the period of circulation of old notes, the country stands the risk of descending into another national, economic and financial crisis as witnessed in the first quarter of the year when the naira redesign policy was being implemented under former Central Bank of Nigeria (CBN) Governor Godwin Emefiele.
The government further expressed concern that the hoarding of both old and new naira notes, driven by the impending deadline, has the potential to destabilise the economy. To prevent this, the government believes that the old notes should continue to be legal tender alongside the new notes until the necessary measures are in place to phase them out.
It admitted that it has been engaging the 10 plaintiff states in their capacities as members of the National Council of State and the National Economic Council (NEC).
It admitted that it has been engaging the 10 plaintiff states in their capacities as members of the National Council of State and the National Economic Council (NEC).
The 10 aggrieved states are Kaduna, Kogi, Zamfara, Ondo, Ekiti, Katsina, Ogun, Cross River, Lagos and Sokoto.
The respondents in the case are the Attorney-General of the Federation, Edo and Bayelsa states.