CBN obeys presidency after defying Supreme Court order on Nigeria’s old currency
Nigeria’s Central Bank (CBN) has approved the circulation of old N500 and N1000 notes after the presidency had given it the nod.
CBN had kept mute and refused to comply with the orders of Nigeria’s Supreme Court on the use of the country old naira notes, despite agitations by Nigerians.
But on Monday, the apex bank confirmed in a statement that the old notes should be issued and accepted by commercial banks in the country, after the presidency had indirectly told it to obey the court.
That was the same day that the presidency said the bank did not need to wait for it before complying with the court’s orders, and taking the cue from the coded message, the bank decided to do what it had refused to do all the while.
In the statement issued by Isa Abdulmumin, CBN spokhat esperson, the apex bank directed commercial banks to start issuing and accepting old notes.
“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 ruling of March 3, 2023.
“Accordingly, 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. Consequently, all concerned are directed to conform accordingly.”
The bank did not explain why it took it so long before complying with an order it was supposed to comply with as soon as it was given.
On the same Monday, the presidency issued a statement saying the CBN did not need President Muhammadu Buhari’s directives before complying with the Supreme Court ruling which extended the validity of the old notes.
Buhari broke silence on Monday over penultimate Friday’s decision of the Supreme Court which ruled that the old notes remain legal tender till the end of the year.
The president also rejected the impression that he lacked compassion, saying that “no government in our recent history has introduced policies to help economically marginalised and vulnerable groups like the present administration.”
The senior special assistant to the president on media and publicity, Garba Shehu, in a statement, said President Muhammadu Buhari never told Attorney General of the Federation, Abubakar Malami and Governor of the Central Bank of Nigeria, Godwin Emefiele, to defy the Supreme Court order.
The President also rejected the impression that he lacked compassion, saying that “no government in our recent history has introduced policies to help economically marginalised and vulnerable groups like the present administration.”
The presidency added that that President Buhari had not done anything “knowingly and deliberately to interfere with or obstruct the administration of justice”, following the ongoing intense debate about the compliance concerning the legality of the old currency notes.
The statement read: “The Presidency wishes to react to some public concerns that President Muhammadu Buhari did not react to the Supreme Court judgement on the issue of the N500 and N1,000 old currency notes, and states here plainly and clearly that at no time did he instruct the Attorney General and the CBN Governor to disobey any court orders involving the government and other parties.
“Since the President was sworn into office in 2015, he has never directed anybody to defy court orders, in the strong belief that we can’t practise democracy without the rule of law and the commitment of his administration to this principle has not changed…
“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.”
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