– Sets Aside Cash Limit Directive Given To Banks

Nigeria’s Supreme Court, today, Friday 3, 2023, ruled that the old Naira notes will remain valid as the country’s legal tender until December 31, 2023.

In a judgment on the suit filed against the Federal Government’s Naira swap policy, the apex court faulted “President Muhammadu Buhari’s decision to redesign the N200, N500 and N1,000 banknotes without consulting the 36 states of the Federation.”

Admitting that President Buhari could exercise Executive Powers on behalf of the Federation, the court held that Mr. President “ought to have given reasonable notice to the federating units before executing the new monetary policy through the Central Bank of Nigeria, CBN.”

It held that reasonable notice was not given to the states as required under section 20(3) of the CBN Act, before the old Naira notes were withdrawn.”

The apex court therefore held that “the old Naira notes should co-exist with the new notes.”

It also faulted the directive issued by President Muhammadu Buhari to the CBN governor to limit access to cash, describing it as “a violation of the right of the owners of such funds to their property.”

The court therefore set aside the cash limit directive given to banks by President Muhammadu Buhari through the CBN.