In a landmark ruling on Wednesday, the Supreme Court has given approval to the Federal Government’s plea to extend the validity period of the old 200, 500, and 1000 naira notes indefinitely.
The court mandated the continued recognition of these old notes as legal tender until the necessary infrastructure is in place for their replacement.*
Previously phased out by the Central Bank of Nigeria (CBN) under former governor Goodwin Emefiele, the decision to extend the validity period comes as a result of a legal challenge mounted by several states.
These states argued that the CBN’s naira redesign policy had inflicted undue hardship on Nigerians and negatively impacted the economy.*
The Supreme Court’s intervention signals a temporary reprieve for the old currency, with the understanding that their acceptance will persist until the required mechanisms are established for their seamless replacement.
Further details on the implications and the government’s plan for the currency transition are expected to be provided in due course.*
