S/Court ruling on naira redesign: Nigerians call out Buhari to address nation

 

COMFORT EKELEME, Business Editor with agency news

 Business operators in the Federal Capital Territory (FCT) Abuja say they are anxious to hear from President Muhammadu Buhari and/or the Central Bank over validity of old Naira notes.

The business operators were reacting to the Supreme Court ruling that the old N500 and N1000 notes remained legal tender till Dec. 31.

 

They, however, said it was risky to accept the notes until directive from either the Presidency or the CBN.

 

They said their decision was borne out of the controversy that followed a similar Supreme Court pronouncement that was not adhered to.

 

A taxi driver, Mr. Abubakar Umar, said he was hopeful that Buhari or the CBN Governor Godwin Emefiele would speak within the week on whether or not they should go ahead and accept those old notes.

 

He said until such directive was given, he would insist that customers paid him only with new N500 or N1000 notes.

 

A petty trader, simply identified as Madam Uloma, also told NAN that she won’t accept the old notes, saying “until I hear from the horse’s mouth I will not collect the old notes”.

 

Uloma said she would not want to go through the stress she went through when the notes were declared invalid by the CBN.

 

A resident, Mr. Fred Oyibo, said he was excited when the pronouncement validating the use of the old notes was made by the Supreme Court.

 

Oyibo, however, expressed disappointment that he could not use the old notes he had, adding that business operators are still rejecting them in spite of the ruling.

 

“I have about N3000 of the old N1000 notes with me and I felt elated when the court gave the ruling, but to my dismay the money was rejected when I went out to buy a few items.

 

“I tried informing them that the ban had been lifted by the Supreme Court and they asked if the CBN had spoken.

 

“I further tried to educate them that once the Supreme Court gives a ruling, everyone was bound by it but they insisted on hearing from the Executive before taking any action.

 

“At that point I got discouraged and went back home, and as I speak with you I still have the money with me,” he said.

 

 

The extension was equally met with outrage, leading to President Muhammadu Buhari’s directive that the old N200 note should be used alongside the redesigned one for a period of time.

 

Meanwhile, governors of Kaduna, Kogi and Zamfara States had approached the Supreme Court on Feb. 3, requesting that the extention should be beyond Feb. 10 as announced by the CBN.

 

Following the suit, a seven-member panel of the apex court, led by John Okoro, gave the order suspending the Feb. 10 deadline till Feb. 15, when the suit would be determined.

 

The case was however not determined on Feb. 15 as it was adjourned till Feb. 22 and subsequently to March 3, when judgment was delivered.

 

In the judgment, the Supreme Court ruled that all the old denominations, including the N500 and N1000 notes, remained valid till Dec. 31.

 

However, Not minding the Supreme court authorizing the continued use of the old N200, N500 and N1000 as legal tender, investigations have revealed that most Nigerians and businesses have continued to reject the old notes.

 

The major culprits in the rejection of the old naira notes include retail shop outlets and traders, shopping mulls, transporters and churches.

 

It is not certain whether banks will accept the old naira notes when they open the banking halls by Monday. Many of the banks have remained closed on the fear of attacks by hoodlums.

 

It would be recalled that the Supreme Court had on Friday, March 3, 2023 ordered that old naira notes should remain in circulation alongside the newly redesigned notes till the end of this year.

 

Although some Nigerians have commended the supreme court for its decision on naira redesign and the extension of the old notes to December 31, many still believe that there is need for President Mohammadu Buhari to address Nigerians on the latest development.

 

They said this is necessary because he had authorized the Central Bank of Nigeria (CBN) to release only the old N200 back into circulation.

 

Speaking with Daily Champion, a Shop owner who spoke to Daily Champion said he is not collecting the old notes because the President has not said anything after the court ruling.

 

Our source maintained that the silence of the President means a lot, adding that Nigerians needs to hear from him before accepting the old notes because he is still the commander in chief.

 

Also speaking, Mr Emmanuel Chinweoge Obasi told Daily Champion that he looked like the worst sinner in church because he wanted to use the money for offering.

 

” I am confused, they are still rejecting the old notes in my area. They said that CBN has not spoken. I went to church today with the old notes but looked like a great sinner. This is terrible,” he said.

 

A businessman, Mr Udofia Gabriel told Daily Champion that it is possible the old notes are no longer available.

 

He said that the notes may have been destroyed by the regulatory authorities as it is the norm following the introduction of the new notes.

 

To him, there is need for adequate regulations and governance in order not to plug Nigerians into more pains.

 

According to him, some banks allowed politicians to use them work against the good intentions of the CBN, adding that there should have been  sanctions.

 

Daily Champion recalled that the  CBN had in October 2022 announced the redesign of N200, N500, and N1,000 notes, and asked Nigerians to deposit their old notes before January 31, 2023 when they would cease to be legal tender. The deadline was shifted to February 10 following difficulties obtaining the new notes.

 

Thereafter, governors of Kaduna, Zamfara and Kogi states dragged the federal government and the CBN to the Supreme Court over the time limit, and the court gave an interim order suspending the February 10 deadline.

 

The three states were later joined by 13 other states bringing the total number of plaintiffs to 16, just as two other states took the side of the federal government.

 

Just last week, a seven-man panel of the apex court presided by Justice John Okoro, ruled that the old naira notes should circulate alongside the new notes until December 31.

 

The Supreme Court declared the Naira redesign policy invalid on the grounds that it was not done with due consultation and in line with constitutional provisions.

 

The apex court held that “no reasonable notice was given as required by Section 20(3) of the CBN Act,” adding that the public only became aware of the policy through press remarks, which cannot qualify as a notice to the public.

 

Justice Emmanuel Agim, who delivered the judgment held that President Muhammadu Buhari cannot unilaterally take such a decision of currency redesign without consulting stakeholders which the plaintiffs are a part and to that extent his actions are invalid.

 

Agim, added that the CBN Governor’s meeting with the governors to explain the policy was not only an afterthought but also an admission that the federal government ought to have consulted the plaintiffs including other stakeholders before commencing the implementation of the policy.

 

.‘Disclose how you’re obeying Supreme Court orders’, SERAP tackles Buhari

However, the Socio-Economic Rights and Accountability Project (SERAP) has urged President Muhammadu Buhari to “disclose details of the measures his government is taking to immediately and effectively obey the Supreme Court decision extending the validity of the old N200, N500, and N1,000 notes, and directing the Central Bank of Nigeria (CBN) to continue to receive the notes from Nigerians.”

 

SERAP urged him “to publicly instruct the CBN to immediately and effectively implement the Supreme Court decision ordering an end to the cash withdrawal limits imposed by banks because such restrictions violate citizens’ right to freely use their property.”

 

SERAP also urged him “to disclose the measures that your government is taking to direct the CBN to immediately re-circulate the old N200, N500, and N1,000 notes, as ordered by the Supreme Court.”

 

In the letter dated 4 March, 2023 and signed by SERAP deputy director Kolawole Oluwadare, the organization said, “There is an overriding public interest in disclosing the details of the measures your government and the CBN are taking to effectively and satisfactorily obey the Supreme Court decision.”

 

According to SERAP, “Disclosing the measures that your government and the CBN are taking to implement the Supreme Court decision would also enable Nigerians to monitor and scrutinize the level of compliance with the decision.”

 

SERAP said, “The public should not be kept in the dark on what your government and the CBN are doing to implement the decision. Widely publishing the implementation measures would also improve accountability of state officials and public confidence in the rule of law and Nigeria’s democracy.”

 

The Supreme Court last week extended the validity of the old N200, N500, and N1,000 Naira notes till 31 December, stating that the CBN must continue to receive the notes from Nigerians. The Court held that the president’s directive on the redesign of the new notes without due consultation is invalid.

 

The letter, read in part: “We would be grateful if the requested information and recommended measures are implemented within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel your government to comply with our requests.”

 

“The implementation by your government of the CBN policy on the redesign of the country’s currency has contributed to violations of citizens’ rights.”

 

“SERAP is concerned about the persistent disobedience of court orders by your government, and the apparent lack of respect for constitutional and international rule of law obligations.”

 

“Nigerians are entitled to the details of the level of compliance by your government and the CBN with the Supreme Court decision as a matter of transparency, justice and the rule of law.”

 

“The Nigerian Constitution, Freedom of Information Act, and human rights treaties to which the country is a state party rest on the principle that citizens should have access to information regarding their government’s activities.”

 

“Your government has the legal duties to act as ordered by the Supreme Court, and consistent with the provisions of the Nigerian Constitution, the CBN Act, and the country’s international obligations.”

 

“Our requests are brought in the public interest, and in keeping with the requirements of the Nigerian Constitution 1999 [as amended]; the Freedom of Information Act; the CBN Act, and the country’s international obligations including under the African Charter on Human and Peoples’ Rights.”

 

“According to our information, the Supreme Court has extended the validity of the N200, N500, and N1,000 Naira notes till 31 December, and directed that the CBN must continue to receive the old notes from Nigerians.”

 

“The Court held that your directive for the redesign of the new notes and withdrawal of the old notes without due consultation is invalid.”

 

 

 

“The Court also stated that the disobedience of its interim order of 8 February that the old N200, N500, and N1,000 notes should continue to circulate alongside the new ones makes Nigeria’s democracy look like a mere pretension while democracy is replaced with autocracy or dictatorship.”

 

 

 

“The Supreme Court also ruled that the cash withdrawal limits imposed by banks as a result of scarcity of currency notes in circulation is illegal, as it amounts to impermissible restriction on citizens’ right to freely use their property.”

 

…Stakeholders challenge banks on infrastructure to support cashless policy.

Meanwhile, An Economist, Dr Tope Fasua, has urged the Central Bank of Nigeria (CBN) to ensure optimally functional internet capacities for the cashless policy be effective.

 

Fasua said this on Sunday in Abuja in interview with the News Agency of Nigeria (NAN).

 

According to him, cashless policy and financial inclusion are gradual processes which require time for the banks to improve their capacity and perfect.

 

“There is no country in the world where everybody is financially included; and there is no country that is totally cashless. It is a matter of effort and gradual progress.

 

“People should be allowed to embrace cashless by themselves, not by punishment, ” he said.

 

Fasua said that what Nigerians had experienced in the last few weeks, with scarcity of cash due to the CBN’s Naira redesign policy, which was affecting many small business, would further alienate them from the policy.

 

“Personally, I have been trying an online bank transaction for the past two hours, I have tried for more than 200 times without success.

 

“This is because the platforms of the banks have been choked up, and they do not have capacity for the kind of uptick they experiencing, ” he said.

 

He, however, said that the apex bank had recorded some achievements with the Naira redesign policy as many more Nigerians had keyed into cashlessness.

 

According to him, Nigerians will become even more comfortable with the policy when the Deposit Money Banks (DMBs) improve their online banking capacity.

 

Fasua also commended the Supreme Court for its decision on Naira redesign, and to extend the legal tender status of the old N200, N500 and N1,000 to Dec. 31.

 

“It is good that the Supreme Court has taken that decision because the policy has been painful and seems to have derailed from what was intended.

 

“Transactions have slowed down, especially at the micro level, people are no longer spending, even if they manage to get the new Naira notes they just hold on to it.

 

“Banks had started to shut their doors permanently as they could not cope with the pressure of their customers seeking to withdraw cash. I am not sure that is how it was meant to be,” he said.

 

He urged President Muhammadu Buhari to direct the CBN governor, Godwin Emefiele, to immediately comply with the decision of the apex court by making the old and new Naira notes available to Nigerians.

 

“The Supreme Court has done the right thing and we hope that the Federal Government will comply immediately, ” he said.

 

NAN recalls that the Supreme Court, on Friday, invalidated the Naira redesign policy initiated by the Federal Government on the grounds that it was not done with due consultation and in line with constitutional provisions.

 

The apex court, thus ordered that the old Naira notes should continue to be used side by side with the new Naira notes until Dec. 31.

 

The court held that the three months timeline given by the Federal Government was also not in tune with the Central Bank of Nigeria (CBN) Act.

 

It argued that the president usurped the powers of the CBN when he issued the directive banning the old N1,000, N500 and N200 notes from February 10.