The Supreme Court has declared the new naira design policy initiated by the Federal Government invalid, citing a lack of proper consultation and failure to adhere to constitutional provisions. As a result, the apex court has ordered that the old naira notes will continue to be used alongside the new naira notes until December 31, 2023. The court found that the three-month timeline for phasing out the old notes was inconsistent with the Central Bank of Nigeria’s Act, rendering it unconstitutional.
Furthermore, the court argued that President Muhammadu Buhari usurped the powers of the Central Bank of Nigeria (CBN) when he issued the directive to ban the old naira notes of N1,000, N500, and N200 effective February 10, 2023. During the judgment, the court addressed the defendants’ claim that it lacked jurisdiction to hear the case. Justice Agim clarified that the actions of the president and the Nigerian government are acts of the federation, and thus the dispute falls within the original jurisdiction of the court.
The court emphasized that the federal government should have conducted adequate consultations to prevent significant disruptions to government operations and trade. It dismissed the argument that the CBN was the appropriate party to be sued, asserting that the challenge was not against the CBN’s actions but rather against the validity of the President’s decision to redesign the naira, introduce new notes into circulation, and withdraw the old notes without consulting the Nigerian populace through the Council of States and the National Economic Council. The court concluded that the CBN did not need to be joined as a party in the suit, as it lacked the authority to implement the policy without the president’s directive, and the suit was not directed against the banks or the CBN.
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