CBN Directs Banks to Comply with Supreme Court Ruling

By Chinomso Momoh
March 13, 2023

The Central Bank of Nigeria (CBN) has finally broken its silence by declaring that the old N200, N500, and N1,000 banknotes remain legal tender till 31 December, 2023.

Development Diaries reports that the apex bank’s Acting Director of Corporate Communications, Isa AbdulMumin, made this known ten days after a Supreme Court ruling nullifying the bank’s naira redesign policy.

Old N200, N500, and N1,000 banknotes Remain Legal Tender – CBN…https://t.co/lA9ZfueFmn pic.twitter.com/xOBoGVATpz

— Central Bank of Nigeria (@cenbank) March 13, 2023

‘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 3 March 2023’, the statement read.

‘Accordingly, the CBN met with the Bankers’ Committee and has directed that the old N200, N500 and N1000 banknotes remain legal tender alongside the redesigned banknotes till 31 December, 2023.

‘Consequently, all concerned are directed to conform accordingly’.

The Supreme Court had ruled that the old notes should remain legal tender until 31 December, 2023. This was after 16 states of the federation instituted a suit to challenge the legality or otherwise of the introduction of the policy.

After the Supreme Court judgment, the presidency and the CBN kept quiet, as Nigerians continued to face hardship as a result of the CBN policy.

Now that the CBN has directed deposit money banks (DBM) in Nigeria to comply with the Supreme Court ruling, Development Diaries calls on the apex bank to work with the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and other Related Offences Commission (ICPC) to ensure that all banks abide by the directive.

We ask, too, that they, CBN, send their staff to all CBN and DMB branches nationwide to join in monitoring the implementation of this directive.

For citizens who reject the old naira notes, section 20 of the CBN Act says anyone who refuses to accept the naira as a means of payment is liable to a fine of N50,000 or six months imprisonment.

Photo source: CBN