After Presidential Rebuke, Nigeria’s Central Bank Says Demonetized Naira Banknotes Still Legal Tender

The Nigerian central financial institution has mentioned the lately demonetized ₦200, ₦500 and ₦1,000 banknotes will stay authorized tender till Dec. 31, 2023. The central financial institution assertion, which reaffirms a Supreme Court ruling that prolonged the lifespan of the demonetized naira banknotes, adopted a rebuke of the CBN by the outgoing Nigerian president, Muhammadu Buhari.

Central Bank’s Silence and the Resulting Speculation

The Central Bank of Nigeria lastly issued a statement on March 13 reaffirming a Supreme Court ruling which prolonged the lifespan of the lately demonetized naira notes. In the assertion, the CBN mentioned the ₦200, ₦500 and ₦1,000 banknotes would “remain legal tender alongside the redesigned banknotes till December 31, 2023.”

After the Nigerian Supreme Court dominated towards the central financial institution’s determination to demonetize the outdated naira banknotes, the CBN initially didn’t subject a press release directing banks and the general public to just accept the outdated notes. CBN Governor Godwin Emefiele, in addition to the outgoing Nigerian president Muhammadu Buhari’s silence reportedly led to hypothesis that the central financial institution wouldn’t abide by the courtroom’s determination.

STATE HOUSE PRESS RELEASE

PRESIDENT BUHARI NEVER TOLD A.G. AND CBN GOV TO DEFY SUPREME COURT ORDER#Thread

— Presidency Nigeria (@NGRPresident) March 13, 2023

However, in what was described as a uncommon public rebuke of the CBN, the Nigerian presidency tweeted that Buhari had not instructed “the Attorney General and the CBN Governor to disobey any court orders involving the government and other parties.” It added the CBN “has no reason not to comply with court orders on the excuse of waiting for directives from the President.”

CBN’s ‘Established Tradition of Obedience to Court Orders’

Moments after Buhari’s reprimand, the CBN claimed in its personal assertion that it has all the time obeyed the selections of the courts and that it’ll equally abide by the Supreme Court’s March 3 ruling.

“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), as a regulator, Deposit Money Banks operating in Nigeria have been directed to comply with the Supreme Court judgement of March 3, 2023,” the CBN mentioned in a press release.

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