President Muhammadu Buhari, on Thursday, declared that old N500 and N1000 notes are no more legal tender in the country.
Buhari in his national broadcast on Thursday morning, said Nigerians should swap the affected currencies at the Central Bank of Nigeria and other designated places.
The President’s pronouncement contradicts the Supreme Court injunction, which restrained the CBN and Federal Government from phasing out the old notes by February.
Late last year, CBN redesigned N200, N500 and N1000 notes and set a deadline of January 31 for the use of old naira notes.
However, after intense pressure, the apex bank extended the deadline to February 10.
Some state governors had earlier met with President Buhari over the naira redesign, arguing it was causing hardship. But he had told them to give him seven days to take action.
The state governors, however, filed a suit at the Supreme Court two days to the deadline and the apex bank restrained the CBN from phasing out the use of the old naira notes from February 10, 2023.
CBN Governor, Godwin Emefiele, had said there was no need for the deadline to be shifted.
This sparked confusion with banks, petrol stations, malls and many others rejecting the old notes while Nigerians spent hours in queues in the process of getting the very scarce new notes.
On Wednesday, during protests in about five states, some Nigerians were killed while banks were set ablaze and ATMs destroyed.
President Buhari in his broadcast acknowledged the hardship Nigerians are experiencing due to the naira redesign policy.
He disclosed that he had directed the CBN to make the new notes available.
“In line with Section 20(3) of the CBN Act 2007, all existing old N1000 and N500 notes remain redeemable at the CBN and designated points.
He said, “Considering the health of our economy and the legacy we must bequeath to the next administration and future generations of Nigerians, I admonish every citizen to strive harder to make their deposits by taking advantage of the platforms and windows being provided by the CBN.
“Let me assure Nigerians that our administration will continue to assess the implementation with a view to ensuring that Nigerians are not unnecessarily burdened. In this regard, the CBN shall ensure that new notes become more available and accessible to our citizens through the banks.”
Buhari noted that the monetary policy had reduced the influence of money in politics, making specific reference to the upcoming elections.
He added, “Fellow citizens, on the 25th of February, 2023 the nation would be electing a new President and National Assembly members. I am aware that this new monetary policy has also contributed immensely to the minimization of the influence of money in politics.
“”This is a positive departure from the past and represents a bold legacy step by this administration, towards laying a strong foundation for free and fair elections.”
The Supreme Court has adjourned matter in the suit filed against the naira policy to February 22.
No fewer than six state governors have dragged the Federal Government before the apex court.