FG asks Supreme Court to extend deadline of old naira notes

The apex court had in March extended the validity of the old naira notes to December 31, 2023. 

In the application, Lateef Fagbemi, the Attorney-General of the Federation said the government has not been able to print the volume of new notes that would enable it to phase out the old currency due to the economic crisis bedeviling the country.

Fagbemi said, “In between the time the order was made and now, there was a presidential election in the country which has led to a transition from the immediate-past government and the incumbent government which is just settling down.”

The AGF added that the Federal Government has directed the CBN to come up with a policy direction on how the naira redesign policy would be addressed in line with the Supreme Court order. 

He said, “The incumbent government has, however, directed the Central Bank to come up, by a way of policy direction, with how the naira redesign policy will be addressed in full compliance with the order of this honourable court.

“Whilst working on the policy direction and due to the economic crisis being witnessed by the government of the federation and other factors beyond its control, the government of the federation to date has not been able to print the new 200, 500 and 1000 naira notes in the equal proportion of the old 200, 500 and 1000 naira notes sought to be recalled as consultation with critical stakeholders is still on-going on how best to approach the redesign policy.”

He maintained that people have been hoarding the redesigned currency because they believe that the validity of the old notes would expire in December as ordered by the Supreme Court. 

“People have been hoarding the new notes on the speculation that the 31 December deadline for the old notes to seize to be legal tender may not be met.

“To effectively stabilise the economy, the federal government is of the strong view that the old versions of 200, 500 and 1,000 notes should continue to be legal tender alongside the new versions.

He added that if the validity of the old notes expires next month, the situation would again plunge Nigerians into a financial crisis the apex court sought to prevent earlier in the year..

“Following the deadline for the validity of the old 200, 500 and 1000 naira notes ordered by this honourable court will make the government of the federation push the country into another national, economic and financial crisis which this honourable court sought to prevent in the first instance by its judgment in the aforementioned suit.

“The only way to save the nation from both of the above situations is by the order of this honourable court to grant the prayers in this application,” Fagbemi prayed.