Court stops implementation of old naira notes deadline

The Federal Government's plan to outlaw the use of the old naira notes starting on February 10, 2023, was temporarily blocked by the Supreme Court on Wednesday.

In a decision on an exparte application filed by the three northern states of Kaduna, Kogi, and Zamfara, a seven-member panel led by Justice John Okoro halted the federal government plan.

The Central Bank of Nigeria set a deadline of February 10 for the currency swap, pitting its governors Nasir El-Rufai of Kaduna, Yahaya Bello of Kogi, and Bello Matawalle of Zamfara against 14 political parties that threatened to boycott the election on February 25 if the CBN didn't shorten the deadline.

This comes as the President, Major General Muhammadu Buhari (ret. ), the CBN, its Governor Godwin Emefiele, and 27 commercial banks were prohibited by a Federal Capital Territory High Court from suspending, stopping, extending, or meddling with the currency swap terminal date.

Following a request from four political parties, Justice E. Enenche issued the order on Monday.

Having said that, the three governors who took the CBN and the Federal Government to the Supreme Court argued that the full implementation of the apex bank's naira redesign policy should be stopped.

However, the applicants' attorney, Mr. A. I. Mustapha, SAN, moved the application on Wednesday and urged the court to grant it in the interest of justice and Nigerians.

He claimed that the action had produced an "excruciating situation that is almost leading to anarchy in the land" as a result of the policy.

Justice Okoro granted the prayer following careful consideration of the motion exparte in the application.

Ruling on the motion, Justice Okoro held that “An order of Interim Injunction restraining the federal government through the Central Bank of Nigeria (CBN) or the commercial banks from suspending or determining or ending on February 10, 2023, the time frame with which the now older version of the 200, 500 and 1,000 denomination of the naira may no longer be legal tender pending the hearing and determination of their motion on notice for an interlocutory injunction”.

He did, however, postpone the hearing for the main lawsuit until February 15, 2023.

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