Experts Speak on Supreme Court Order on Old Naira Notes, As Banks Await CBN Directive
- Financial experts have commented on the Supreme Court's ruling regarding old naira notes
- The legal tender status of old naira notes will remain for 10 more months, until December 2023
- Banks in Nigeria are awaiting instructions from the CBN on implementing the Supreme Court's order
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On Friday, March 3, 2023, the Supreme Court ordered that old naira notes of N200, N500, and N1,000 will remain legal tender until Sunday, December 31, 2023.
Financial experts have shared their thoughts on the ruling, with many welcoming it as a necessary measure to ensure a smooth transition to the new naira notes.
Source: Facebook
Experts have their say on the supreme court old naira notes ruling
Speaking Ayodeji Ebo, managing director/chief business officer at Optimus by Afrinvest said:
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“I think this is positive for the economy and gives the CBN more time for the implementation of the new policy. Also positive for small businesses. We will be awaiting the CBN’s response to the Supreme Court decision on this subject."
Uche Uwaleke, professor of Capital Markets at Nasarawa State University Keffi, encouraged the CBN to follow the judgment of the country's top court.
He stated that doing so will assist in boosting economic activity and alleviate the current hardships Nigerians face as a consequence of the policy.
Uwaleke noted:
"It is vital to recognize that the CBN has made some progress toward the goals it set for itself.
"The decrease of large amounts of cash circulating outside of commercial banks, the growth in electronic transactions, and the increase in financial inclusion are among the accomplishments so far."
Uwaleke added further that the December 31 deadline provides an opportunity for the CBN to reassess the policy and improve on its implementation without causing distortions to the economy.
Tope Fasua, CEO of Global Analytics Consulting Limited, also said:
"I think the Supreme Court's judgment is a good thing; regrettably, the policy has been quite unpleasant and appears to have deviated from what was intended.
"If you go to some banks, you will notice that people are still waiting in line. Banks are permanently closing their doors; this is not how it should be.
"People are not spending. When individuals get their hands on the new notes, they don't want to spend them; instead, they save them.
Muda Yusuf, chief executive officer of CPPE said:
"Commendationto the Supreme Court on its ruling on new naira notes, it is a needless disruption of economic activities.
"Hopefully, President Buhari, the Central Bank Governor and the Attorney General of the Federation will comply with this court judgment in the interest of the rule of law, good order and public interest.
"We applaud the Supreme Court's decision because it protects citizens from a policy that is, by all accounts, disruptive, repressive, and harsh."
CBN plans to pump new naira notes into circulation
Meanwhile, the Central Bank of Nigeria is preparing to make another N500bn new naira notes available to banks and, more crucially, Nigerians.
Due to the lack of new naira notes, Nigerians and PoS operators have been forced to continue trading with the old currency.
It is expected that the apex plan to pump more cash, pushing the value of new naira notes in circulation closer to N1 trillion.
Source: Legit.ng
