The Nigerian Apex Court, Supreme Court in a 7-panel judgement on friday,3rd March 2023 , ordered the nullification of cbn policy stating that old naira notes of N200, 500,1000 by cbn as non-legal tender.
The Judgement follows an application brought by three state Attorney Generals on legal tender status of Old Naira.
it will be recalled that cbn had through her policy, designated old 200,500, and 1000 notes as non-legal tender, and ordered Nigerians to only use new redesigned notes.
The Nigerian president Mohammed Buhari had ordered cbn to redistribute only old notes of 200 denomination, and that such can be used by Nigerians Until April this year.
The ruling comes as a relief to Nigerians amidst sufferings imposed on Nigerians by the cbn policy.
The new cbn policy had introduced sufferings on Nigerians due to the fact that new notes were not being distributed nor circulated by the banks.
The supreme Court noted that before president Buhari could have started the new policy, through the cbn, the president should have given the governors of the 36 states reasonable notice.
The president ought to have given reasonable notice to the federating units before implementing the policy through the cbn.
The supreme court held that reasonable notice was not given to the 36 states before execution of the policies.
The supreme court stated that in line with section20(3) of the CBN ACT, before the old naira notes were to be withdrawn, the president must give reasonable notice, as required by that section of the law.
The Supreme court also dismissed the preliminary objection filed by federal government challenging the power of supreme court to hear the matter, it held that it has such powers.
The Supreme court therefore held that the monetary policy implemented by the cbn is invalid, and as a result it held that the old notes are still valid till December 2023.