Commercial banks in different parts of the country on Monday resumed issuance of the old N500 and N1000 notes to customers over the counter and through their Automated Teller Machines (ATM).
The move comes against the backdrop of the Supreme Court ruling on the naira redesign policy of the Central Bank of Nigeria (CBN) which compelled banks to issue the old notes to Nigerians.
On Friday, the Supreme Court ruled that the Central Bank of Nigeria (CBN) must extend the use of old banknotes until 31 December due to the negative impact of the policy. A seven-member panel of the court, led by John Okoro, unanimously ordered the CBN to continue receiving the old notes from Nigerian citizens.
The court found that President Muhammadu Buhari’s directive to the CBN on the withdrawal of old notes and redesign of new banknotes without proper consultation was invalid.
CBN last December introduced new N200, N500 and N1,000 notes by withdrawing the old notes from circulation. The policy caused widespread chaos throughout the country, resulting in protests in various regions as Nigerians faced challenges in their efforts to do business and access cash for daily transactions.
Since the Supreme Court ruling on Friday, the CBN and the Nigerian government have not reacted to the new development. Multiple calls and text messages sent to the presidential spokesperson, Garba Shehu, and the acting spokesperson of the CBN, AbdulMunin Isa, were not responded to as of press time Tuesday night.
Amid the uncertainty, banks and business owners continue to express worry about the silence of the apex bank and the use of the old notes as legal tender.
