Godwin Emefiele, governor of the Central Bank of Nigeria, bowed to pressure on Monday and officially directed commercial banks to comply with the Supreme Court’s ruling, which came exactly ten days after it mandated the use of old N,1000 and N500 notes as legal tender until December 31, 2023.
He also said that the old N200, N500, and N1,000 would still be accepted as payment until the end of the year.
According to Emefiele, the decision was made following a Sunday meeting with the Bankers’ Committee.
The old naira notes’ legality has been clarified thanks to this development. The activity is likewise expected to improve the enduring of Nigerians who have confronted extreme difficulties over the shortage of new naira notes in the midst of the dubious prohibition on the old notes.
The most recent development was made public by Isa AbdulMumin, the acting Director of Corporate Communications, in a statement titled “Old N200, N500, and N1,000 banknotes remain legal tender – CBN.”
“In accordance with the established tradition of obedience to court orders and the maintenance of the rule of law principle that characterized the government of President Major General Muhammadu Buhari (retd.),” the statement read. Additionally, the Central Bank of Nigeria, in its capacity as a regulator, has been instructed to comply with the March 3, 2023, decision of the Supreme Court.
As a result, the Central Bank of Nigeria (CBN) held a meeting with the Bankers’ Committee and decided to let the old N200, N500, and N1,000 banknotes serve as legal tender alongside the new ones until December 31, 2023. As a result, everyone involved is expected to conform.
The Nigerian Bar Association and the Nigeria Labour Congress had criticized the Federal Government and the Central Bank of Nigeria (CBN) earlier on Monday for not complying with the Supreme Court’s decision regarding the old naira notes.
The Arewa Consultative Forum issued a statement on Sunday stating that Buhari’s failure to comply with the Supreme Court would damage his regime’s reputation.
Abubakar Malami, the President and Attorney-General of the Federation, was harshly criticized by the NBA for not adhering to the ruling from the Supreme Court.
The High Court had in its Walk 3 judgment expanded the lawful delicate status of the old N200, N500, and N1,000 notes until December 31.
In any case, the AGF and the CBN Lead representative, Godwin Emefiele would not consent to the request regardless of strain from Nigerians. Commercial banks were also encouraged by their actions to reject the old notes as legal tender.
State governments involved in the lawsuit were worried about the development and threatened to sue the two officials for contempt on Tuesday (today) if they didn’t follow the top court’s order.
The Supreme Court ruled in the judgment by Justice Emmanuel Agim that Buhari violated the constitution by issuing instructions for the naira notes.
The President was also criticized by the seven-member panel for his broadcast on February 16 in which he stated that only the N200 note should remain legal tender, which was a flagrant violation of the restraining order issued by the Supreme Court.
Justice Agim stated, “If the President of the country or any authority or person refuses to obey the orders of courts, the rule of law upon which our democratic governance is founded becomes illusory.” In a constitutional democracy like ours, the President’s disobedience to court orders is a sign that the constitution has failed and that democratic governance has been replaced by autocracy or dictatorship.
The commitment of the NBA In response to the Supreme Court’s continued disobedience, NBA President Yakubu Maikyau, SAN, issued a warning on Monday that the bar would resist any action that would undermine the country’s democracy, constitution, and rule of law.
“Statement of the NBA President, Yakubu Maikyau, SAN, on the naira redesign policy:” was the title of the seven-page document. Demand that the Supreme Court uphold the decision it made in case no. Delivered on March 3, 2023, in the case SC/CV/162/2023 between the Attorney-General of Kaduna State and nine others and the Attorney-General of the Federation and two others.
Refering to a few sections of the High Court decision which upbraided the President for dismissing the orders, the NBA said it was miserable and dampening that the Central Government and its organization, the CBN stayed unyielding about the situation of Nigerians which was an immediate result of the execution of the naira overhaul strategy notwithstanding a few mediations for its survey.
“Regrettably, not even the clear findings by the Supreme Court as to the unfair and deceptive nature of the policy could cause the Federal Government to retrace its steps,” the group of lawyers wrote.
The Supreme Court went so far as to declare not only that the President’s actions constitute a threat to the rule of law and the existence of our democracy, but also that they show disrespect for the court.
“We cannot, under any pretense, tolerate, or accept any appearance of autocracy or dictatorship. Our democratic governance system is here to stay, and everyone needs to respect it as well as jealously guard and protect it.
The president of the NBA said that the situation was the biggest test or challenge to the country’s constitutional democracy. He also said that the executive could not afford to ignore the Supreme Court’s orders that were meant to benefit the people who elected it to power.
As a result, he stated, “I therefore, on behalf of all Nigerians, call on the President to immediately direct compliance with the terms of the orders made by the Supreme Court in its judgment delivered on March 3, 2023.”
Maikyau declared, “The Supreme Court has issued directives to the Federal Government for the benefit of the people, and there is no option other than to comply,” insisting on obedience to the court’s orders. The Constitution mandates that the President adhere to and implement the Supreme Court’s decision.
“The NBA shall stand up against any action that seeks to undermine the rule of law, the integrity of the court, and the independence of the judiciary,” Maikyau said, adding that the NBA remained committed to the promotion, establishment, and respect of the rule of law.
He praised the Supreme Court’s decision, stating that it spoke not only to the court’s duty to uphold the rule of law and its integrity but also to its responsibility to the people.
The bar association added, “The Supreme Court has by this judgment proven to be the Supreme Court of the people of Nigeria.” It stated that whenever public confidence in the other branches of government begins to wane, the legal profession, and the judiciary in particular, must rise to the occasion by delivering justice with such courage and precision to provide assistance to the people.
Maikyau added, “This is what the Supreme Court has done so boldly and courageously in this instance.”
“The decisions of the Supreme Court shall be enforced in any part of the Federation by all authorities and persons, and by the court with subordinate jurisdiction to that of the Supreme Court,” the NBA stated, citing section 287 (1) of the Federal Republic of Nigeria’s 1999 (as amended) Constitution to support its position.