Bitcoin

The Nigerian central bank has said the recently demonetized ₦200, ₦500 and ₦1,000 banknotes will remain legal tender until Dec. 31, 2023. The central bank statement, which reaffirms a Supreme Court ruling that extended the lifespan of the demonetized naira banknotes, followed a rebuke of the CBN by the outgoing Nigerian president, Muhammadu Buhari.

Central Bank’s Silence and the Resulting Speculation

The Central Bank of Nigeria finally issued a statement on March 13 reaffirming a Supreme Court ruling which extended the lifespan of the recently demonetized naira notes. In the statement, the CBN said the ₦200, ₦500 and ₦1,000 banknotes would “remain legal tender alongside the redesigned banknotes till December 31, 2023.”

After the Nigerian Supreme Court ruled against the central bank’s decision to demonetize the old naira banknotes, the CBN initially did not issue a statement directing banks and the public to accept the old notes. CBN Governor Godwin Emefiele, as well as the outgoing Nigerian president Muhammadu Buhari’s silence reportedly led to speculation that the central bank would not abide by the court’s decision.

However, in what was described as a rare public rebuke of the CBN, the Nigerian presidency tweeted that Buhari had not instructed “the Attorney General and the CBN Governor to disobey any court orders involving the government and other parties.” It added the CBN “has no reason not to comply with court orders on the excuse of waiting for directives from the President.”

CBN’s ‘Established Tradition of Obedience to Court Orders’

Moments after Buhari’s reprimand, the CBN claimed in its own statement that it has always obeyed the decisions of the courts and that it will similarly abide by the Supreme Court’s March 3 ruling.

“In compliance with the established tradition of obedience to court orders and sustenance of the Rule of Law Principle that characterized 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 judgement of March 3, 2023,” the CBN said in a statement.

Register your email here to get a weekly update on African news sent to your inbox:

Tags in this story

What are your thoughts on this story? Let us know what you think in the comments section below.

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.














Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer

Articles You May Like

From France to America, the far right is on the march
How red tape is holding the US back
Trump promises to cut taxes and regulations in pitch to top US CEOs
Most-read mortgage news you might have missed
Here are 9 stocks that can benefit from Fed interest rate cuts