Naira redesign: CBN bows to pressure, orders banks to dispense, accept old N500, N1,000

 

.NLC gives CBN, FG 7 working days to end cash crunch

.Buhari never told Malami, Emefiele to defy Supreme Court order –Presidency

.Stop rejecting old notes, Soludo tells Anambra people

 

By Obiora Ifoh, AKOR SYLVESTER-Abuja , COMFORT EKELEME, Business Editor and Pamela Eboh

 

The Central Bank of Nigeria (CBN) has  directed Deposit Money Banks (DMBs) to comply with the supreme court ruling of March 3,2023 on old naira notes.

CBN said this is in compliance with the established tradition of obedience to court orders and sustenance of the Rule of Law Principle that characterized the government of President Muhammadu Buhari, and by extension, the operations of the Central Bank of Nigeria (CBN).

A statement signed by its Ag. Director, Corporate Communications, Isa AbdulMumin, noted that 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 December 31, 2023.

CBN said all concerned are directed to conform accordingly.

Meanwhile, Worried by the non availability of cash and the  problems Nigerians faced meeting their daily needs occasioned by cash and fuel scarcity, the Nigeria Labour congress (NLC) has given the federal government and the Central Bank of Nigeria (CBN) 7 working days ultimatum to address the issues, or face shut down of the country.

 

The NLC also urged the courts to do justice to the election cases before them to reduce tension and ill-feelings associated with the outcome of the election.

 

NLC President, Joseph Ajaero, who addressed newsmen at the Central Working Committee (CWC) of the congress in Abuja yesterday, expressed worry that workers and Nigerians as a whole are passing through unprecedented hardship as a result of the unfriendly policy, saying the congress can no longer bear the situation.

 

He said the congress, will by Wednesday next week, direct all workers to begin sit-at-home strike, beginning from Thursday next week, if government fails to reverse decision on cash and fuel.

 

“The Congress wish to inform the federal government that we will no longer keep quiet to this issue of perennial fuel scarcity and arbitrary increase of petroleum products prices.

 

“The issue of cash crunch, the NLC is giving the federal government of Nigeria, the agencies of government including the Central Bank of Nigeria, and top banking institutions, seven working days to address the issue of the cash crunch.

 

“If they fail to do this at the expiration of the seven days, the Congress is directing all workers in the country to stay at home because it has become very difficult to even access one naira to enter vehicles to your workplace.

 

“It is even difficult to buy products, especially from traders who don’t have bank accounts. This is the situation we have found ourselves.

 

“The federal government came out with the policy that even the old currency are still valid. What we have discovered is that even when the banks give you those old currencies, the traders are not accepting it. And even when you take it to the same banks, the banks are not accepting it either.

 

“We are being frustrated to a level that we can no longer keep quiet.

 

“In terms of the political situation in the country. We are urging all gladiators to remember that the interest of this country is paramount to all of us and they should do everything reasonably possible to make sure that the system is maintained.

 

“The courts are there where they will take their matters to and we urge the courts to do justice to the issues brought to them”, the congress president said.

 

However, the Presidency has denied any involvement on the defiance of the Attorney General and the Central Bank of Nigeria, CBN Governor in disobeying the Supreme Court’s judgement on the issuance and reintroduction of the N500 and N1,000 old currency notes into circulation.

 

A statement by the Senior Special Assistant to the President, (Media & Publicity), Garba Shehu on Monday said that since President Muhammadu Buhari was sworn into office in 2015, he has never directed anybody to defy court orders, having  in mind that it is impossible to practise democracy without the rule of law.

 

The presidential spokesman who said that the commitment of President Buhari’s administration to the principle of Rule of Law has not changed insists that, “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.”

 

Similarly ,the Anambra State Governor, Prof Chukwuma Soludo has urged residents of the state to quit rejecting old naira notes from the banks, saying that it is the durective from the Central Bank of Nigeria, CBN.

Soludo who spoke through his Press Secretary, Christian Aburime on Monday said that the CBN Governor, Dr Godwin Emefiele, personally confirmed the above to him during a phone conversation on Sunday night.

He said, “Commercial banks have been directed by the Central Bank to dispense old currency notes and to also receive same as deposits from customers.

 

“Tellers at the commercial banks are to generate the codes for deposits and there is no limit to the number of times an individual or company can make deposits.

 

“The Governor of the CBN gave the directive at a Bankers’ Committee meeting held on Sunday, 12th March, 2023. The Governor, Dr Godwin Emefiele, personally confirmed the above to me during a phone conversation on Sunday night.

 

“Residents of Anambra are therefore advised to freely accept and transact their businesses with the old currency notes (N200; N500; and N1,000) as well as the new notes.”

 

He called on residents to report any bank that refuses to accept deposits of the old notes; saying that Anambra State Government will not only report such a bank to the CBN, but will also immediately shut down the defaulting branch.