Zamfara State is one of three states that initially took the Federal Government to the Supreme Court over the Central Bank of Nigeria’s naira‑swap policy. Zailani Bappa, Special Adviser to Governor Bello Matawalle on Public Enlightenment, Media and Communications, explains to MAIHRAJI ALTINE why the state joined the others in instituting the case. Governor Matawalle is one of three governors who decided to challenge the CBN’s deadline for the naira swap. Although he belongs to the ruling APC, he, along with two other “progressive” APC governors, chose to go to the Supreme Court to contest the policy’s implementation. It is rare for politicians to criticize a policy or its execution by their own government, but doing so is essential when the ruling party must confront the public’s concerns.
The cashless policy itself is commendable and cannot be dismissed outright. However, the Central Bank appears either unprepared or rushed, leading to poor implementation and serious negative consequences for the economy, especially the micro‑economy. Families are facing a demand‑and‑supply crisis because of the scarcity of new naira notes and the unreliable online transactions that have followed. These crises must be fully addressed before the old notes are finally declared non‑legal tender. Accordingly, the Supreme Court issued an interim injunction on 10 January, prohibiting the CBN from enforcing the phase‑out of old notes pending a final ruling on 15 February.
The interim ruling is a triumph for ordinary Nigerians, and the three governors should be commended for protecting their constituents and the nation’s citizens from losing their money. Their aim in going to court was not to mock anyone or undermine interests but to correct flaws in the policy’s implementation. Governor Matawalle has instructed residents to continue using both old and new notes and has directed security agents to arrest anyone who refuses to accept the old notes as legal tender. He has also met with all bank managers in the state, urging them to prioritize the people’s interests and to respect the Supreme Court’s order. As the state’s Chief Security Officer, he is authorized to enforce this ruling in the public interest, warning that anyone who sabotages these efforts will be arrested and prosecuted.
Matawalle described the current redesign as ill‑timed and poorly executed. While the cashless policy is ultimately beneficial—shifting more money into the banking sector, enabling banks to finance projects and lend to businesses—it must be introduced gradually, not abruptly. In many successful countries, the transition is phased to avoid hardship. In Nigeria, the sudden rollout coincided with a critical political transition, compounding the problem. For example, the Independent National Electoral Commission (INEC) Chairman recently visited the CBN Governor to express concerns about the agency’s ability to operate amid the crisis, noting that INEC needs cash for staff allowances, movements, and other exigencies.
The decision by the Central Bank to cease recognition of old notes as legal tender from 10 February has plunged the country into a serious crisis. On the streets, people queue at commercial banks hoping for a few notes to be dispensed from ATMs. At filling stations, motorists struggle to pay for fuel with point‑of‑sale terminals. Small businesses in markets are collapsing due to cash shortages, leading to losses of perishable goods. Civil servants are forced to seek petty cash for daily family needs. This hardship stems from the poor implementation of the cashless policy in recent weeks.
Governor Matawalle praised the Supreme Court’s intervention, believing it will alleviate the masses’ suffering. He trusts the Court’s balance of justice, which prompted the suspension of the CBN’s order to phase out old notes. He argues that the Court’s decision has prevented a larger crisis that could threaten peace, stability, and the upcoming general elections. Without a gradual sensitisation and implementation, the economy cannot function when new notes are unavailable and old notes are withdrawn. Most rural residents lack bank accounts, cannot use mobile transactions, and distrust cashless payments—making the abrupt change a recipe for disaster. Moreover, cash is essential for elections in remote areas, as highlighted by the INEC Chairman.
Matawalle emphasized that his decision to go to court was driven by a desire to safeguard the nation, not by personal ties to President Muhammadu Buhari, whom he respects as a father figure and from whom he has received strong support in combating banditry. The three governors did not challenge the federal policy itself but the CBN’s poor implementation.
Regarding the broader tension between the Federal Government, the CBN, and the three governors, it should not be framed as a lingering crisis but as a problem on the verge of resolution. The governors’ legal action is a pathway to solving the issue, not a confrontation. When the Court sits on 15 February, a workable solution is expected to replace the current quagmire.
Finally, accusations that the governors are protecting billions of old notes for campaign purposes are unfounded. Such smear campaigns are common when reforms threaten entrenched interests. Previous allegations against Governor Matawalle yielded no evidence, and there is nothing to prove.
Comments are closed for this story.