In what appears to be a twist in the ongoing saga of the Nigerian currency, commercial banks in Nigeria have started issuing out old N500 and N1000 notes to their customers.
This development follows the Supreme Court’s recent ruling on the Naira-Swap, which has created confusion and uncertainty in the country’s financial sector.
While some banks are still adhering to the old status quo and issuing only old N200 notes, at least four commercial banks are issuing out old N500 and N1000 notes to their customers in parts of Oyo, Lagos, Kano, and Abuja.
The Central Bank of Nigeria (CBN) is yet to issue a directive on the Supreme Court’s order that the old N500 and N1000 notes, phased out by the Federal Government, must remain in circulation till December.
A seven-member panel of justices presided over by Justice Inyang Okoro delivered a unanimous decision on Friday, stating that President Muhammadu Buhari’s order to the CBN for the redesigning and withdrawal of old notes of N200, N500 and N1,000, without consultation with the states, the Federal Executive Council (FEC), National Council of State, and other stakeholders, was illegal and therefore null and void.
The apex court observed that the policy went into full swing without sufficient notice given, as provided under the CBN Act.
The ruling has sparked controversy and confusion in the financial sector, with some industry analysts predicting that it could cause a slowdown in economic growth.
The decision has also led to a situation where some banks are now issuing old notes, while others are still issuing new notes.
This development has raised concerns among consumers, who are unsure which notes are still valid and accepted.
The CBN, which is responsible for issuing and regulating the Nigerian currency, is yet to make any official statement on the matter.
However, experts have warned that the confusion and uncertainty in the financial sector could further damage investor confidence and have a negative impact on the economy.
It remains to be seen how the CBN will respond to the Supreme Court’s ruling and how commercial banks will navigate the current situation.
The ongoing uncertainty and confusion in the financial sector highlight the need for clear and consistent policies that promote transparency and accountability in the Nigerian economy.
The Supreme Court’s ruling on the Naira-Swap has created a new twist in the Nigerian currency saga. While some commercial banks are issuing old notes, others are still issuing new notes, leading to confusion and uncertainty among consumers.
The CBN’s response to the ruling will be crucial in determining the future of the Nigerian economy.
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Joseph Omoniyi
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- Tags: CBN, Naira notes, Naira policy, Supreme Court
