Reps contradict Supreme Court, ask CBN to phase out old naira notes by December

Despite subsisting Supreme Court ruling that all naira notes should remain in circulation, the House of Representatives has asked the Central Bank of Nigeria (CBN) to phase out the ₦1,000, ₦500, and ₦200 by 31 December.

The House asked the CBN to issue more new ₦200, ₦500, and ₦1,000 notes and begin the gradual withdrawal of the old notes from circulation before the deadline of 31 December.

This resolution followed a motion of urgent public importance moved by Afam Oghene (LP, Anambra) on Thursday.

The House erroneously claimed that the Supreme Court ordered a 31 December 2024 deadline for the withdrawal of the old notes, whereas the court’s order mandated the indefinite coexistence of the currencies.

Naira Scarcity

In October 2022, the CBN began a currency swap policy that caused severe hardship for Nigerians across the country.

For many mmembers f the ruling All Progressives Congress (APC), the policy was viewed as a ploy to sabotage the party and its then candidate, Bola Tinubu.

To mitigate the difficulties, several state governments sued the federal government, urging the Supreme Court to reverse the monetary policy.

In March 2023, the Supreme Court ordered the CBN to continue accepting the old notes from Nigerians until 31 December 2023.

In November of that year, the Attorney General and Minister of Justice, Lateef Fagbemi approached the Supreme Court to allow the two currencies to continue to be in use.

The Supreme Court panel led by John Okoro, ruled that the old notes remain legal tender until they are replaced with the redesigned notes.

The Motion

While moving the motion, Mr Oghene claimed that uncertainty persists in the country regarding the deadline, with many unaware of what will happen to the old currency.

He also claimed that the CBN has yet to commence sensitisation efforts regarding the withdrawal of the old notes.

“CBN has not shown any sign of sensitisation or kick-started any awareness programme to remind Nigerians about this important economic policy in order to help them prepare for the 31/12/2024 deadline.

“Nigerians will be plunged into even more chaotic situations than occurred in February 2023, when the old ₦200, ₦500, and ₦1,000 notes cease to be legal tender and a medium of exchange for goods and services from 1 January 2025,” he said.

He further stated that the CBN is still releasing “the old ₦200, ₦500, and ₦1,000 notes mixed with the new ₦200, ₦500, and ₦1,000 notes for business transactions in Nigeria, instead of gradually withdrawing the old notes from circulation or instructing commercial banks to do so by issuing only the new notes.”

Despite these false claims, neither the presiding officer, Deputy Speaker Ben Kalu, nor the members debunked them, as the motion was not debated.

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Members voted in support of the motion when it was put to a vote by Mr Kalu.

Resolutions

As a result, the House urged the CBN to instruct commercial banks to immediately stop cash payments to customers using the old ₦200, ₦500, and ₦1,000 notes and instead begin gradually withdrawing the old notes.

The House also urged the CBN to launch awareness programmes to ensure Nigerians are informed and prepared for the 31 December 2024 deadline.

Finally, the House directed the House Committee on Banking Regulations to ensure compliance and report to it within 21 days.