In light of the current economic realities, the policy
advisory council of President Bola Tinubu has asked the federal government to
extend the validity of the old naira notes to December 31, 2024.
The recommendation was made in a report, titled, ‘Policy
Advisory Council Report: National Economy Sub-committee’.
The council also suggested the implementation of a gradual
phase-out (on a monthly basis) of the old currency notes.
“Extend the December 31st, 2023, deadline to December 31st, 2024 (if required),” the document reads.
“Bring in new notes
through the deposit money banks by 5% monthly and take out the old notes
through the deposit money banks by the same 5% (12-18 months).”
In October 2022, Godwin Emefiele, the erstwhile governor of
the Central Bank of Nigeria (CBN), announced the plan to redesign the naira to
control money supply and aid security agencies in tackling illicit financial
flows.
Following the unveiling of the redesigned naira notes on
November 23, 2022; the deadline for the validity of the old notes was fixed for
January 31, 2023.
But this was later extended to February 10 amid a nationwide
outburst in protest of what was described as poor implementation of the policy.
On March 3, a supreme court judgement invalidated the naira
redesign policy introduced by the apex bank as citizens’ angst spread across
the country.
Delivering judgment in a suit instituted by three states of
the federation, a seven-member panel of the apex court held that the old N200,
N500, and N1000 notes remain legal tender until December 31, 2023.
About two weeks after the court ruling, the CBN complied
with the directive, instructing commercial banks, in a statement, that the old
N200, N500, and N1000 notes remain legal tender until December 31, 2023.
“In compliance with
the established tradition of obedience to court orders and sustenance of the
rule of law principle that characterised the government of President Muhammadu
Buhari, and by extension, the operations of the Central Bank of Nigeria (CBN),
as a regulator, deposit money banks operating in Nigeria have been directed to
comply with the supreme court ruling of March 3, 2023,” the statement had read.
“Accordingly, the CBN met with the bankers’ committee and
has directed that the old N200, N500, and N1000 banknotes remain legal tender
alongside the redesigned banknotes till December 31, 2023.”
TINUBU KEEPING HIS
PROMISES?
During his presidential campaign, Tinubu explained that he
had nothing against the naira redesign policy “in principle”.
In his inaugural speech on May 29, 2023, the president
promised to revisit the demonetisation policy of the CBN.
He said the currency swap was too harshly applied by the
apex bank.
“Whatever merits it
had in concept, the currency swap was too harshly applied by the CBN given the
number of unbanked Nigerians,” Tinubu had said.
“The policy shall be reviewed. In the meantime, my
administration will treat both currencies as legal tender.”
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