Citizens, Banks Await CBN’s Directive on Old Naira Notes Acceptance Despite Supreme Court Ruling

Despite the Supreme Court ruling extending the use of the old naira notes as legal tender till December 31, 2023, Nigerians and commercial banks have insisted on receiving approval from the Central Bank of Nigeria, CBN.

Investors King reports that banks are unwilling to accept the old naira notes which in turn made traders and service providers reject the notes.

Meanwhile, bank customers, financial analysts and business owners have demanded the recirculation and use of the old naira notes as directed by the Supreme Court.

Bank officials have noted that they will comply with the apex court ruling when they get CBN’s directive to that effect.

“Banks would obey what CBN says, not the Supreme Court. Banks in Nigeria are heavily regulated, and we only listen to what the CBN says. Despite the ruling, we still need to hear from our regulator,” an official said.  

He further explained that the CBN reports to the President who then issues directives on matters.

Another official from Keystone Bank who does not want his name mentioned stated that no commercial Bank can do anything contrary to CBN directive, adding that the old naira notes are not available in the bank.

“We can’t do anything contrary to CBN. They will direct what next and probably from Monday we shall get more updates from our management when they meet on Monday.

“We don’t have the old notes and we are not answerable to the Supreme Court. The CBN must  send  a circular before we can implement any directive.”

In conversations with financial analysts and businessmen, the CBN was enjoined to comply with the supreme court judgement to reduce inflationary pressure and revive economic activities which was brought low by cash scarcity.

The Chief Executive Officer, Wyoming Capital and Partners, Tajudeen Olayinka, said the CBN, though introduced a good policy but with the process and inadequate knowledge, it crumbled.

“CBN got the whole thing wrong by introducing a policy without good knowledge of policy/system dynamics, and it is sad that it started and ended in ignominy,” he said.

On his part, the President, the Association of Capital Market Academic of Nigeria, ACMAN, Prof Uche Uwaleke called for immediate adoption of the supreme court ruling to reduce the difficulties currently faced by the citizens.

“The time frame till Dec 31, 2023 provides an opportunity for the CBN to re-assess the policy and improve on its implementation without causing distortions to the economy,” he added.