Old Naira notes crisis: At last, Buhari, CBN bow to pressure, obey Supreme Court order
…FG denies directing Malami, Emefiele, to disobey Court
…Says CBN must make money available for circulation
…As CBN directs banks to issue, accept old notes
…Rejection of old notes illegal — Sanwo-Olu, Abiodun warn businesses
…As NLC issues 7-days ultimatum on Naira Scarcity
By Seun Ibiyemi, Bankole Taiwo, Moses Adeniyi, Matthew Denis
After months of struggles and hardship posed on Nigerians by the President Muhammadu Buhari backed Central Bank of Nigeria (CBN) Naira redesign policy, the President and the Apex Bank on Monday finally bowed to pressure yielding to the order of the Supreme Court.
President Muhammadu Buhari on Monday bowed to pressure on compliance to the judgement of the Supreme Court that the old Naira notes of N200, N500, N1,000 should remain legal tender till 31st of December 2023, saying the Central Bank of Nigeria (CBN) has no reason not to comply with court orders on the excuse of waiting for directives from him.
In a statement signed on Monday by the Senior Special Assistant to the President (Media & Publicity), Garba Shehu, titled “PRESIDENT BUHARI NEVER TOLD AG AND CBN GOV TO DEFY SUPREME COURT ORDER,” President Buhari denied ever directing anybody to defy court orders.
The statement argued that since the President was sworn into office in 2015, he has never directed anybody to defy court orders, in the strong belief that democracy can’t be practised without the rule of law, maintaining that the commitment of his administration to this principle has not changed.
In response to ongoing intense debate about the compliance concerning the legality of the old currency notes, the Presidency stated clearly that President Buhari has not done anything knowingly and deliberately to interfere with or obstruct the administration of justice.
The Presidency described as “unfair and unjust” what it said were negative campaign and personalised attacks against the President by the opposition and all manner of commentators, stating no court order at any level has been issued or directed at him.
The President said the CBN, thus, has no reason not to comply with court orders on the excuse of waiting for directives from the President.
The statement reads, “The Presidency wishes to react to some public concerns that President Muhammadu Buhari did not react to the Supreme Court judgement on the issue of the N500 and N1,000 old currency notes, and states here plainly and clearly that at no time did he instruct the Attorney General and the CBN Governor to disobey any court orders involving the government and other parties.
“Since the President was sworn into office in 2015, he has never directed anybody to defy court orders, in the strong belief that we can’t practise democracy without the rule of law and the commitment of his administration to this principle has not changed.
“Following the ongoing intense debate about the compliance concerning the legality of the old currency notes, the Presidency therefore wishes to state clearly that President Buhari has not done anything knowingly and deliberately to interfere with or obstruct the administration of justice.
“The President is not a micromanager and will not, therefore, stop the Attorney General and the CBN Governor from performing the details of their duties in accordance with the law.
“In any case, it is debatable at this time if there is proof of willful denial by the two of them on the orders of the apex court.
“The directive of the President, following the meeting of the Council of State is that the Bank must make available for circulation all the money that is needed and nothing has happened to change the position.
“It is an established fact that the President is an absolute respecter of judicial process and the authority of the courts.
“He has done nothing in the last eight or so years to act in any way to obstruct the administration of justice, cause lack of confidence in the administration of justice, or otherwise interfere or corrupt the courts and there is no reason whatsoever that he should do so now when he is getting ready to leave office.
“The negative campaign and personalised attacks against the President by the opposition and all manner of commentators is unfair and unjust, as no court order at any level has been issued or directed at him.
“As for the cashless system, the CBN is determined to put in place, it is a known fact that many of the country’s citizens who bear the brunt of the sufferings, surprisingly support the policy as they believe that the action would cut corruption, fight terrorism, build an environment of honesty and reinforce the incorruptible leadership of the President.
“It is therefore wide off the mark to blame the President for the current controversy over the cash scarcity, despite the Supreme Court judgement. The CBN has no reason not to comply with court orders on the excuse of waiting for directives from the President.”
President Buhari has also rejected the impression that he lacks compassion, saying that “no government in our recent history has introduced policies to help economically marginalised and vulnerable groups like the present administration.”
Recall that a seven-member panel of justices presided over by Justice Inyang Okoro, on Friday March 03, held that the directive by President Buhari to the CBN for the redesigning and withdrawal of old notes of N200, N500 and N1,000, without consultation with the States, the Federal Executive Council and the National Council of State and other stakeholders, was unconstitutional.
The apex court observed that no reasonable notice was given before the implementation of the policy as provided under the CBN Act.
The apex court ruled that the old Naira notes should, against the position of Buhari and the CBN that terminated their legal tender status, remain legal tender for circulation till December 31st.
The aftermath of the Court judgement had generated further controversies as official statement and directives from either the President or the CBN were delayed to address the public, informing rejection of the old notes after some commercial banks issued them to customers but refused to accept them back for deposit.
Confusion had set in after customers who got the old notes of N500 and N1,000 had problems spending same due to rejection by traders and motorists, and upon returning to their banks were turned down by banks which refused to accept for deposit the same old notes they issued, but rather directed the customers to follow CBN’s directives.
Recall, following hardship of the masses over the scarcity of the new notes, President Buhari had in his state-of-the-nation address on February 16, directed that the old N200 note would remain in circulation till April 10, but maintained the old N500 and N1,000 notes cease from being legal tender, a development that attracted wild reactions and protests, but which the Supreme court on March 03 nullified.
CBN bows to pressure
Meanwhile, trailing President Buhari’s position, CBN on Monday bowed to pressure disclosing that the old N200, N500 and N1,000 notes remain legal tender until December 31, 2023.
CBN spokesperson, Ag. Director Coroporate Communications, Isa Abdulmumin, who announced the development in a statement, stressed that the apex bank met Bankers’ Committee and has directed that the old N200, N500 and N1,000 banknotes remain legal tender alongside the redesigned banknotes till December 31, 2023.
The statement reads, “In compliance with the established tradition of obedience to court orders and sustenance of the Rule of Law Principle that characterised the government of President Muhammadu Buhari, and by extension, the operations of the Central Bank of Nigeria (CBN), as a regulator, Deposit Money Banks operating in Nigeria have been directed to comply with the Supreme Court ruling of March 3, 2023.
“Accordingly, the CBN met with the Bankers’ Committee and has directed that the old N200, N500 and N1,000 banknotes remain legal tender alongside the redesigned banknotes till December 31, 2023.
“Consequently, all concerned are directed to conform accordingly.”
…Govs warn businesses, banks over continuous rejection
Meanwhile, following the rejection of the old notes by businesses, traders and banks, some State Governors have gone tough, warning such enterprises risk sanctions.
Lagos State Governor, Mr. Babajide Sanwo-Olu on Monday called on business owners, especially retailers, in the State to accept the old N500 and N1,000 notes – in line with the Supreme Court judgement that the currency remains legal tender until December 31, 2023.
Sanwo-Olu declared rejection of the old note as “illegal,” noting that there is no reason to reject the old notes, going by the Supreme Court judgement delivered on March 3, 2023.
Sanwo-Olu’s position was declared in a statement on Monday signed by the Commissioner of Information and Strategy, Lagos, Mr. Gbenga Omotoso, a copy of which was made available to NewsDirect.
Sanwo-Olu who noted the hardship sparked by the Naira redesign policy, which has affected business and commercial activities, called on all agencies of the Lagos State Government not to reject payments made with the old currency by the public.
The statement reads: “The Lagos State Government has noted the hardship sparked by the Naira redesign policy, which has affected business and commercial activities.
“There is no reason to reject the old notes, going by the Supreme Court judgement delivered on March 3, 2023.
“The apex court declared that “no reasonable notice was given as required by Section 20(3) of the CBN Act,” noting that the public only became aware of the policy through press remarks, which cannot qualify as a notice to the public.
“The court maintained that the policy has impeded the functions of State governments, pointing out that the directive that stops the use of the old notes is illegal, unconstitutional, null and void.
“Governor Babajide Sanwo-Olu has, therefore, called on business owners, especially retailers, to accept the old N500 and N1,000 notes – in line with the Supreme Court judgement that the currency remains legal tender until December 31, 2023. It is illegal to reject the notes.
“All agencies of the Lagos State Government are advised not to reject payments made with the old currency by the public.”
Nigerians have faced tough times from the Naira redesign policy of the Central Bank of Nigeria (CBN), a development that saw the confiscation of cash from the masses.
Although the Supreme Court has ruled that the old notes remain legal tender and should circulate till 31st December, following a suit filed by State Governments, the CBN’s slow response to make public, directives to commercial banks on status of the old notes has left majority waiting in confusion.
The lingered silence of both the Federal Government and the CBN, informed State Governments threatening to file a suit of contempt of court against the duo should they ignore the court judgement.
Days after the Supreme Court Judgement, some banks issued the old notes to customers but refused to collect the notes for deposit, directing customers to follow the CBN’s directives.
The declaration of the Presidency on Monday that it didn’t stop the CBN from obeying the order of the Supreme Court and a directive of the CBN which trailed the development Monday night (announcing that the old N200, N500 and N1000 banknotes remain legal tender alongside the redesigned banknotes till December 31, 2023, while directing commercial banks to issue and accept the old notes for deposit) have brought in new narratives.
Meanwhile in Ogun State, Governor Dapo Abiodun, has given resounding hope to teeming Nigerians after speaking with the CBN Governor, Mr. Godwin Emiefele, that he was moved and worried by the stress and suffering Nigerians go through daily as a result of paucity of new Naira notes in circulation and refusal of commercial banks and traders alike to accept the old notes.
Abiodun, in a media chat on Sunday confirmed his conversation with the CBN Governor after the latter met with Managing Directors of Commercial Banks in the Country, asserting that Emefiele has agreed to go with the pronouncement of the Supreme Court which makes the old Naira notes a legal tender till December 31st, 2023.
He explained that the policy has caused serious disaffection and unprecedented agitation among the masses, as they continued to languish in chronic misery and insolvency.
The Governor said in the face of the suffering caused by the policy and in the interests of the general masses of Nigeria, something urgent must be done to ameliorate the situation and bring solace to the people.
In his words: “I have taken it upon myself to personally speak to the Governor of Central Bank of Nigeria, Mr Godwin Emiefele, and he has promised to adjust the earlier position of the apex bank concerning the old Naira notes and in line with the pronouncement of the Supreme Court.
“I am happy to tell you that a great relief is on the way for Nigerians concerning the Naira swap policy; we shall all laugh last in great excitement.”
Recall that Governor Dapo Abiodun, had seriously warned commercial banks operating in the state to desist from flouting the judgement of the Supreme Court concerning the legality of the old Naira notes, thereby creating agony among the residents of the State.
NLC threatens strike with 7-days ultimatum on Naira scarcity, fuel scarcity
The Nigeria Labour Congress, on Monday, issued a 7-day ultimatum to the federal government to address current fuel and naira scarcity in the country.
President of the NLC, Joe Ajaero, disclosed this while briefing journalists at Labour House on the outcome of a meeting convened by the Central Working Committee of the congress.
He said the union would declare nationwide strike and mass action if the two major problems are not addressed after seven days.
“If they fail to do so at the expiration of the seven working days, the Congress is directing all workers in the country to stay at home.
“This is because it has become very difficult to access even one naira, especially by traders who do not have bank accounts.
“We have also discovered that even when banks give out old currencies, they cannot be spent. Even when you take them back to the same banks, they do not accept them.
“We have been frustrated to a level that we can no longer keep quiet,” Ajaero said.
The NLC President also lamented difficulties being experienced at petrol stations.
“At fuel stations where there is petrol, it sells for as much as N350 a litre in some parts of the country.
“We will no longer be quiet about this issue of perennial fuel scarcity and arbitrary increase in prices,” he said.
On the ongoing state council elections of the NLC, Ajaero said some state governors were interfering with the process.
“Some state governors now dictate to the NLC through the chairmen in those states,” he said.
He alleged that a Governor in one of the states in the Southeast openly campaigned that NLC members should vote for a particular candidate.
He explained that NLC’s attempt to resist the approach was met with the manhandling of its officers by hoodlums engaged by the state government.
“They disrupted our election in that state. Our state secretariat has been destroyed by thugs sent by the governor.
“The thugs took over that place for three months. The state chairman of the NLC was driven out of the state,” he said.
