- The federal government has urged the Supreme Court to extend the December deadline for old notes to be in circulation
- It begged the apex court to allow the old notes and new notes to be used concurrently after December
- It said that the nation may sink into economic crises if the December deadline is not extended
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
The federal government has enjoined the Supreme Court to extend the deadline for the old naira notes to remain in circulation.
This comes as Nigerians begin counting down to the December 31 deadline earlier issued by the apex court.
Recall that the Supreme Court nullified the ban on using the old N200, N500, and N1000 banknotes as legal tenders earlier in the year.
FG seeks extension beyond year-end
In light of the order given on March 3 that the old naira note should remain legal tender until year-end, the federal government is seeking an extension of the time, The Nation reported.
Citing economic crises that have bedevilled the country, it stated that enough new notes have not been printed to phase out the old notes.
According to the Nigerian government, the country risks descending into another national, economic, and financial crisis like it did in the first quarter of the year under Godwin Emefiele, former CBN governor.
It said this could happen if the Supreme Court declined its request to extend the circulation period of old notes.
It pleaded with the court to allow the use of the new notes alongside the old ones until the required structures are in place and proper consultation is established.
Nigerians already hoarding naira notes
The federal government said Nigerians have started hoarding the old and new naira notes ahead of the December 31 timeline, warning that this may hurt the economy.
It noted that it has been engaging the ten plaintiff states; Kaduna, Kogi, Zamfara, Ondo, Ekiti, Katsina, Ogun, Cross River, Lagos, and Sokoto, as members of the National Council of State and the National Economic Council (NEC).
It added that the Attorney-General of the Federation, Edo, and Bayelsa states are the respondents in the case.
In a recent report, the CBN confirmed that the old naira notes will remain legal tender indefinitely.
"People laugh at me for not having money": Buhari finally explains why he approved new naira notes
Legit.ng earlier reported that former president Muhammadu Buhari explained why he approved the new naira notes.
In an NTA interview, Buhari said this was done to ensure his integrity was not questioned.
Buhari claimed that the move was required to identify people who had hidden money unlawfully.