Following the Supreme Court’s ruling that the old N200, N500 and N1,000 notes should remain legal tender until December 31, 2023, Nigerians are waiting to hear from the Central Bank of Nigeria (CBN).
The Supreme Court, in a unanimous decision by a seven-member panel of justices on Friday, held that the old banknotes should remain in use until the end of the year.
“I think this is positive for the economy and gives the CBN more time for the implementation of the new policy. Also positive for small businesses. We will be awaiting the CBN’s response to the Supreme Court decision on this subject,” said Ayodeji Ebo, managing director/chief business officer at Optimus by Afrinvest.
Uche Uwaleke, professor of Capital Market at the Nasarawa State University Keffi, advised the CBN to comply with the ruling from the highest court in the country.
He said doing so would help revive economic activities and reduce the current difficulties being experienced by Nigerians on account of the policy.
“Be that as it may, it’s important to recognise that the CBN has recorded some achievements in terms of the objectives it set out to achieve. The reduction in huge cash circulating outside the commercial banks, the surge in electronic transactions, and the increase in financial inclusion are part of the achievements recorded thus far,” he said.
Uwaleke said the December 31 deadline provides an opportunity for the CBN to reassess the policy and improve on its implementation without causing distortions to the economy.
Tope Fasua, CEO of Global Analytics Consulting Limited, said: “I think it is a fine development that the Supreme Court has taken that decision; unfortunately, the policy has been very painful and seems to have sort of derailed from what was intended.
“If you go to some banks, you will see that people are still in the queue. Banks are permanently closing their doors; this isn’t how it’s meant to be. President Muhammadu Buhari and the CBN Governor Godwin Emefiele should allow the N500 and N1,000 old notes. Due to the slowdown of transactional processes at a very micro level, people are no longer spending. When people manage to get the new notes, they wouldn’t want to spend them; instead, they hold on to them.
“The Supreme Court has done the right thing and what’s expected; we hope that the government will comply.”
The Centre for the Promotion of Private Enterprise (CPPE) commended the ruling of the Supreme Court, describing the naira redesign policy as “a needless disruption of economic activities”.
“Hopefully, President Buhari, the Central Bank Governor and the Attorney General of the Federation would comply with this court order in the interest of the rule of law, good order and public interest. We welcome the supreme court ruling as it protects the citizens from a policy which is, by all accounts, disruptive, repressive and draconian,” Muda Yusuf, chief executive officer of CPPE, said.
Traders who spoke with BusinessDay on Friday expressed mixed feelings over the apex court’s ruling after they had been forced to deposit their old notes.
“I am very happy with the Supreme Court ruling that the old notes are still legal tender despite coming late. We have already taken most of the old notes to the bank,” said Aisha Bakare, a food provision trader at Mile 12 Market, Lagos.
“The question now is whether CBN will obey the Supreme Court ruling and recirculate the old notes,” she added.
Bamidele Adeniyi, a mechanic at Owode Market in Mile 12, Lagos, described the Supreme Court’s verdict as a welcome development.
Read also: Analysts see Nigeria’s inflation accelerating further on naira scarcity
He said: “We have been waiting for this since last month and we were left disappointed when the case was adjourned till today (Friday). But now we are happy that the ruling went in the direction we wanted.
“The naira redesign policy has been poorly managed by the CBN and it has only brought hardship to the masses. My worry now is that the President said the old N500 and N1,000 notes have been destroyed by CBN. So, where are we going to get the old notes to recirculate?”
Bilikisu Mohammed, a Point of Sale agent at Mile 12 Market, expressed hope that the court ruling would make the CBN release more money into the economy for Nigerians to transact.
She said her business has been badly hit by the cash crunch, adding that several businesses have shut down operations owing to the policy.
“The policy is a good one but the strategy for execution is very poor. Many businesses have been badly affected because of this and people couldn’t vote during the presidential election because of the scarcity.”
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