Demonetization Deadline Extended Once Again
The Nigerian Supreme Court has granted the Federal Government’s request to extend the validity of the N1000, N500, and N200 naira notes for the second time. The previous deadline of December 31, 2023, set by the same court was approaching, prompting the government to seek an extension of the notes’ validity. Previously, the Supreme Court had invalidated a demonetization directive issued by former President Muhammadu Buhari, criticizing the government and the Central Bank of Nigeria (CBN) for not seeking public input. Despite multiple deadline extensions, cash shortages persisted as many Nigerians were unable to return their old banknotes on time.
Public Consultation and Coexistence
The Supreme Court panel, led by John Okoro, has ruled that the old naira banknotes will remain legal tender until they are replaced with redesigned notes. This means that the old and redesigned notes will coexist as legal tender. The court emphasized the importance of consulting with key stakeholders and establishing necessary structures before discontinuing the circulation of the old banknotes. Additionally, the Central Bank of Nigeria (CBN), now under the leadership of Olayemi Michael Cardoso, has reiterated that all banknotes, including the previously demonetized naira, will remain legal tender indefinitely, beyond the initial December 31, 2023, deadline.
Hot Take: Nigerian Supreme Court Extends Validity of Old Naira Notes Indefinitely
The Supreme Court of Nigeria has once again extended the validity of the N1000, N500, and N200 naira notes. This decision comes after the government sought an extension of the demonetization deadline. The court ruled that the old banknotes will continue to be legal tender until they are replaced with redesigned notes. The Central Bank of Nigeria has also clarified that all banknotes will remain legal tender indefinitely, even beyond the initial deadline. The ruling and clarification aim to mitigate cash shortages and accommodate those who were unable to return their old banknotes on time. It emphasizes the importance of public consultation and establishing necessary structures before discontinuing the circulation of old banknotes.
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