FG Urges Supreme Court to Prolong Validity of Old Naira Notes Beyond December 31 Deadline

The Federal Government has formally requested the Supreme Court to extend the validity of old naira notes as legal tender beyond the stipulated December 31 deadline. Additionally, the government seeks the court’s approval to lift its previous order, issued on March 3, which mandated the coexistence of old and new notes until the end of the year.

Notably, the Central Bank of Nigeria (CBN) had previously announced that old N200, N500, and N1,000 banknotes would retain their legal tender status until December 31, 2023. The government now contends that due to challenges in printing a sufficient volume of new notes, an extension is imperative to avoid a disruption in currency circulation.

Lateef Fagbemi, the Attorney-General of the Federation, submitted a fresh application outlining the government’s requests, including a review of the court’s consequential order and an extension of the old notes’ legal tender status until December 31. The government emphasized that failing to extend this period could lead to a potential national economic and financial crisis, drawing parallels with challenges encountered during the implementation of the naira redesign policy earlier in the year.

Expressing concerns about possible hoarding of both old and new naira notes ahead of the looming deadline, the government urged the court to permit the concurrent usage of old and new notes until further consultations with stakeholders take place. The application highlighted ongoing engagements with 10 plaintiff states, who initially sought Supreme Court intervention on behalf of the public, resulting in the previous extension of the old notes’ circulation.

With the Supreme Court setting a hearing date for November 30, the nation awaits a crucial decision that could impact the trajectory of its currency transition beyond the current deadline.