• Background on the Naira Redesign Policy Controversy

• Supreme Court Extends Validity of Old Naira Notes

• Banks Complying with Supreme Court Directive

• CBN Confirms Legality of Both Old and New Notes

• Concerns over Continued Rejection of Old Notes by Some Traders and Transporters

Commercial banks in Lagos, Nigeria have begun dispensing old naira notes to customers in compliance with a new directive from the Supreme Court. The court extended the validity period of the old notes until the end of the year following the controversy surrounding the Central Bank of Nigeria's (CBN) naira redesign policy from October 2022. Several states sought the Supreme Court's intervention to extend the validity of the old N200, N500, and N1,000 notes. On February 8, the court restrained the CBN from enforcing the February 10 deadline, and in its final judgment on the matter last week, the apex court ruled that the old notes should continue as legal tender until December 31, 2023.

Background on the Naira Redesign Policy Controversy:

Last year, the CBN redesigned the naira notes, including the N200, N500, and N1,000 denominations. The move generated controversy, and several states challenged the policy in court. The controversy led to the Supreme Court's intervention, which extended the validity of the old notes until the end of 2023.

Supreme Court Extends Validity of Old Naira Notes:

The apex court in Nigeria extended the validity of the old N200, N500, and N1,000 notes to December 31, 2023. This directive was issued in response to the controversy surrounding the CBN's naira redesign policy from October last year. The court restrained the CBN from enforcing the February 10 deadline for the old notes and ruled that the old notes should continue as legal tender.

Banks Complying with Supreme Court Directive:

Following the Supreme Court's directive, some commercial banks in Lagos, Nigeria have started issuing the old naira notes to customers at their ATMs and over the counter. The banks are complying with the court order, despite silence from the CBN and President Muhammadu Buhari. A Zenith Bank branch in Festac Town paid out the old notes to customers over the counter, and the ATMs at the United Bank for Africa (UBA) and Guaranty Trust Bank (GTB) in the Ikeja area of Lagos were also dispensing the old notes.

Legality of Both Old and New Notes:  

According to TheCable news reports; Isa Abdulmumin, the CBN spokesperson, confirmed that both old and new naira notes are legal tender, and banks are currently issuing them to customers. Although the CBN has not issued an official statement on the matter, Abdulmumin confirmed that the old notes are valid until December 31, 2023. He expressed concern about the continued rejection of the old notes by some traders and transporters, stating that they should not be rejected as they are still a valid means of exchange.

Concerns over Continued Rejection of Old Notes by Some Traders and Transporters:

Despite the Supreme Court's directive, some traders and transporters are still rejecting the old naira notes. Abdulmumin expressed concern over this and emphasized that the old notes are still legal tender and should not be rejected. He is urging Nigerians to accept both old and new naira notes for transactions.