Economic experts have backed the Central Bank of Nigeria’s (CBN) position that the N200, N00, and N1000 old naira notes will continue to circulate as legal tender alongside the new notes in line with the Supreme Court’s Judgment in 2023......READ THE FULL STORY>>.....READ THE FULL STORY>>
The experts, who spoke differently, described the recent call by the House of Representatives on the CBN to begin the gradual withdrawal from circulation of the old naira notes as unwarranted as it negates the Supreme Court Judgment.
The controversy stems from the House of Representatives’ recent call on the CBN to begin the gradual withdrawal of old naira notes and ensure the availability of new notes in the N200, N500, and N1000 denominations for Nigerians.
The House also urged the apex bank to instruct Money Deposit Banks to conduct transactions with their customers using the new naira notes, initiating phasing out the old currency.
This resolution came after Thursday’s plenary session, when a motion of urgent national importance sponsored by Victor Ogene, the representative of Ogbaru Federal Constituency in Anambra State, was adopted.
Speaking with ThisNigeria yesterday, the President of the Institute of Fiscal Studies (IFS), Godwin Ighedosa, said the House of Representatives must respect the Supreme Court judgment without any excuses.
Ighedosa said, “The National Assembly needs to look at the language of the Supreme Court very carefully. The apex court says that the old notes should continue to subsist until the Federal government is able to put in place a system in all the required positions so that the old currency can be stopped from circulation.
“Recall, there were prayers of the Attorney-General of the Federation, arguing in the suit that given the economic situation facing the country at the moment, as well as the financial crisis, the Federal government has not been able to put in place all requirements fit for the December 21, 2023 deadline.
“So, the Supreme Court decided to make an order, stating that until such a time that the government can play its part for old currency to be faced out, then the old ones should continue alongside the new notes.
“Essentially, it means until the CBN can print the necessary volume of currency for the economy to continue operations in the system if the apex bank cannot establish at a time that they have the quantum of currency required for the economy, then they have not met the requirement the Supreme Court has set aside which means, the old currency must continue alongside with the new ones,” he stressed.
*Back CBN’s indefinite stance
On his part, Prof Ajayi Omo-Ogun of the University of Calabar urged the House of Representatives to maintain the law as pronounced by the Supreme Court of the land.
“The Legislature can only make any altercation by amendments to the CBN act, which empowers the apex bank to print and circulate money; otherwise, the House of Representatives call is null and void.
“As lawmakers, they are supposed to adhere strictly to the Supreme Court pronouncement on the matter, especially as lawmakers; this will further promote the principle of separation of powers. The Supreme Court is responsible for interpreting the law, and in this case, this has been done, so all hands must be on deck to ensure the law is implemented in the letter,” Ajayi said.
Meanwhile, the Central Bank of Nigeria [CBN] has clarified that the old series of N200, N500, and N1,000 banknotes will remain valid indefinitely, refuting claims that they will cease to be legal tender by December 31, 2024.
In a recent statement released in Abuja by the CBN Acting Director of Corporate Communications, Sidi Ali Hakama, the apex bank emphasised that such reports are false and intended to disrupt the nation’s payment system.
