After Presidential Rebuke, Nigeria’s Central Bank Says Demonetized Naira Banknotes Still Legal Tender

The Central Bank of Nigeria announced that the recently demonetized ₩200, ₦500 and ₡1000 bills are legal tender until December 31, 2023 The central bank’s statement said that the ₩200, ₦500, and ₡1000 notes will remain legal tender until December 31, 2023. The central bank’s statement reaffirmed a Supreme Court ruling that extended the life of the defunct naira bills and came in response to a rebuke to the CBN by outgoing Nigerian President Muhammadu Buhari.

The central bank’s silence and resulting speculation

The Central Bank of Nigeria finally issued astatementon March 13, reaffirming the Supreme Court ruling that extended the life of the recently demonetized naira bills. In the statement, the CBN said that the ¥200, ¥500, and ¥1,000 bills “will remain legal tender along with the redesigned bills until December 31, 2023.”

After the Nigerian Supreme Court ruled against the central bank’s decision to nullify the old naira bills, the CBN did not initially issue a statement instructing banks and the public to accept the old bills, CBN Governor Godwin Emefiele and outgoing Nigerian President Muhammadu Buhari’s The silence is said to have led to speculation that the central bank would not comply with the court’s decision.

STATE HOUSE PRESS RELEASE

President Buhari never told the A.G. and CBN GOV to ignore the Supreme Court order#28} thread

– Presidency Nigeria (@NGRPresident) . March 13, 2023

However, in a rare public rebuke of the CBN, the Nigerian Presidencytweeted that Buhari “has not instructed the Attorney General and CBN President not to obey any court order involving the government or any other party”. He added that the CBN “has no reason not to comply with the court order under the pretext of waiting for instructions from the President.”

CBN’s “established tradition of following court orders”

Minutes after Buhari’s reprimand, the CBN, in its own statement, insisted that it always follows court decisions and will follow the March 3 Supreme Court ruling as well.

“In accordance with the well-established tradition of obedience to court orders and upholding the principles of the rule of law that characterize the operations of the administration of President Muhammadu Buhari, and by extension the regulator, the Central Bank of Nigeria (CBN), the Deposit Insurance Bank operating in Nigeria is subject to the March 3, 2023 Supreme Court decision directed to do so,” the CBN said in a statement.

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