Nigeria Court overturns President Naira’s Redesign Directive
2023.03.06 11:52
Nigeria Court overturns President Naira’s Redesign Directive
By Tiffany Smith
Budrigannews.com – The old 200, 500, and 1,000 naira notes will continue to be in circulation until Dec. 31, 2023, according to a ruling by the Supreme Court of Nigeria. This effectively nullifies the naira redesign that Nigerian President Muhammadu Buhari had previously announced. The intention behind the redesign was to gradually phase out the use of the previous naira notes.
The court’s seven-member panel, led by John Okoro, found unanimously that President Buhari issued the directive without consulting with anyone.
The court said that before starting such a project, the federal government should have talked to the state government through relevant bodies like the National Council of States and the National Economic Council.
The Supreme Court then ruled that Buhari’s order to stop issuing the previous notes was illegal and a violation of the 1999 Constitution. In addition, the court issued a second order nullifying it and extended the currency notes’ status as legal tender until December 31.
In response to a lawsuit brought by some state governors challenging the president’s directive, the Supreme Court issued nine declarations and orders.
After introducing the newly designed banknotes, which were in short supply, late in 2022, Buhari ordered the withdrawal of the 200, 500, and 1,000 naira notes by January 31, 2021.
Some opposing state governors have referred to the directive as a “demonetization policy,” and it has resulted in a shortage of banknotes, disrupting the financial system and causing hardship for millions of citizens.
Numerous businesses were also impacted by the inability to access cash due to the scarcity of banknotes.
Cryptocurrency users in Nigeria who want to switch from tokens to fiat for local business transactions and day-to-day expenses have also been impacted by the existing pegged maximum ATM withdrawal amount of 20,000 naira ($43).
However, the supreme court’s latest decision has lowered expectations regarding the availability of cash for transactions.
