CBN Quietly Approves Old Naira Disbursement, Traders Reject Banknotes

0
486
Central Bank of Nigeria's (CBN) governor Godwin Emefiele gives a press conference on the naira devaluation during a media briefing in Abuja on June 15, 2016. Nigeria's central bank said today it will ease currency controls and allow the naira to devalue as the country works to attract investment amid a worsening economic outlook. Central Bank of Nigeria (CBN) governor Godwin Emefiele said in a televised speech from Abuja that the currency market will be "purely market driven". / AFP / PHILIP OJISUA (Photo credit should read PHILIP OJISUA/AFP/Getty Images)

The Central Bank of Nigeria (CBN) has approved the disbursement of old N500 and N1,000 notes, as Deposit Money Banks’ (DMBs) Auto Teller Machines (ATMs) begin to dispense the banknotes.

Recall that the commercial banks had not been disbursing the old Naira notes since the central bank phased them out on 10 February 2023. 

Despite multiple rulings by the Supreme Court, the CBN insisted that the old Naira notes have ceased to be legal, but freed up the old N200 notes after President Muhammadu Buhari’s approval. 

- Advertisement -

However, after a ruling by the Supreme Court on Friday, 3 March 2023, the banks began to roll out the banknotes on Monday, 6 March 2023. 

- Advertisement -

Frank Talk Now  reported that the Supreme Court ordered the old Naira notes to remain legal till December 31, 2023, voiding the Naira redesign policy of the central bank.

- Advertisement -

The judgement was delivered after 16 states in Nigeria sued the Federal Government over the Naira redesign policy, stating that it has negatively affected trading in their states. 

According to the state governments, it was gathered that the livelihood of their citizens is at risk, as they are unable to access funds deposited in banks due to a lack of new Naira notes. 

-Advertisement-


After the judgement of the Supreme Court, Nigeria’s financial regulator and the Federal Government has not publicly addressed the judgement as they did with two previous ruling of the apex court. 

However, the CBN seem to have silently adhered to the Supreme Court judgement, as branches of Sterling Bank and Zenith Bank, amongst others, have began to disburse the old Naira notes. 

READ ALSO: Naira Scarcity: Drama As Native Doctor Storms Bank (See Photos)

But the disbursement has not convinced traders of the legality of the old Naira notes. During a market survey, Prime Business Africa gathered that the traders are awaiting public confirmation from the Federal Government.

The traders said President Muhammadu Buhari hasn’t publicly addressed the judgement, so they are not ready to risk accepting the Naira notes.

Also, fuel stations, including that operated by government-controlled firm, Nigerian National Petroleum Company (NNPC) Limited, rejected the old notes.

Fuel attendants in NNPC, MRS and Oando said they are only accepting the redesigned Naira notes or transfers from customers. 

Speaking on the Supreme Court ruling, CBN spokesperson, Isa Abdulmumin, said: “Yes, the CBN has not issued an official statement on the issue. Anyone banks give to you, you can collect. 

“We just want to make life easy for Nigerians,” The Cable quoted him in a report. He also stated: “Banks are paying old notes as well as new notes. They are all legal tender.

Abdulmumin urged traders to accept the old Naira notes, as its now legal tender: “No. They can’t reject it. It’s all legal tender.”

Source: Prime Business Africa

We do everything possible to supply quality news and information to all our valuable readers day in, day out and we are committed to keep doing this. Your kind donation will help our continuous research efforts.

-Advertisement-

-Want to get the news as it breaks?-

- Advertisement -