Following the Naira Scarcity in Nigeria, GoldenNewsNg has compiled the Latest CBN News on New Naira Note And Dollar Today, 5th March 2023. This means the latest updates on the Naira crisis in Nigeria can be accessed on this page.
Are old naira notes still valid?
The apex court, in a unanimous decision by a seven-member panel of Justices, held that the old banknotes should remain valid legal tenders until December 31.
What is the history of 100 naira note?
Will banks accept old notes?
Yes ! since the supreme court declaration and extension of the use of old naira notes, all banks are expected to accept your old naira note.
The Supreme Court of Nigeria, on Friday, 3 March 2023, ordered that old N200, N500, and N1,000 notes remain in circulation till December 31, 2023.
This online news platform understands that the apex court also nullified the Federal Government’s naira redesign policy, declaring it as an affront to the 1999 Constitution.
Justice Emmanuel Agim, who read the lead judgment, held that the preliminary objections by the defendants (the Attorney General of the Federation, Bayelsa and Edo states) are dismissed as the court has the jurisdiction to entertain the suit.
Citing Section 23(2)1 of the constitution, the court held that the dispute between the Federal Government and states must involve law or facts. The apex court further held that President Muhammadu Buhari in his broadcast admitted that the policy is flawed with a lot of challenges.
The recent economic cash crisis in Nigeria, caused by the naira redesign, political climate, and economic conditions, has increased bitcoin’s value proposition for average Nigerians. In Africa, bitcoin offers an indispensable financial safe haven.
The naira redesign is only the most recent catalyst magnifying the challenges faced by average Nigerians, a benevolent move to curb economic challenges and counterfeiting notes has resulted in a doubling down on the financial pressures faced by Nigerians.
Nigerians are currently facing record-high inflation at ~21%, a cash shortage of the newly redesigned naira notes, and an incoming administration that will determine the country’s course for the next few decades and the continent’s political landscape.
All eyes were on our country as citizens voiced their frustrations at the ballot on Saturday, and our Government continues to wrestle with its growing economic challenges.
Currency in circulation drops to N1.38tn – CBN
The total amount of currency-in-circulation in the country dropped from N3.29tn as of the end of October 2022 to N1.38tn as of the end of January 2023 as a result of the naira redesign policy of the Central Bank of Nigeria.
Figures obtained from the CBN showed this represents a drop of N1.91tn in the three-month period.
The Governor, CBN, Godwin Emefiele, had in October 2022, announced plans to redesign the old N200, N500 and N1,000 notes.
Emefiele also announced deadlines for Nigerians to swap their old with the new notes.
The banking sector regulator said, “Accordingly, all Deposit Money Banks currently holding the existing denominations of the currency may begin returning these notes back to the CBN effective immediately. The newly designed currency will be released to the banks in the order of first-come-first-serve basis.
“Customers of banks are enjoined to begin paying into their bank accounts the existing currency to enable them to withdraw the new banknotes once circulation begins.”
He decried the challenges associated with currency management including significant hoarding of banknotes by members of the public, with statistics showing that over 80 per cent of currency-in-circulation was outside the vaults of commercial banks.
IMF projects N4.26tn as currency outside banks
Amid the naira redesign policy of the Central Bank of Nigeria, the International Monetary Fund has projected that currency outside banking system would hit N4.26tn in 2023.
In its report titled ‘Nigeria: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Nigeria’, IMF that maintained there would be an increase in the volume of currency outside banks despite CBN’s aggressive effort to bring in more cash into the banking system and out of the hands of the public.
The report stated that the money outside of the banking system would be up from N2.94tn in 2021 to N7.66tn by 2027.
It was also projected that the money outside bank would be N3.54tn in 2022, N5.1tn in 2024, N6.08tn in 2025 and N6.99tn in 2027.
EFCC intercepts N32.4m ‘election money’ in Lagos
The Economic and Financial Crimes Commission, EFCC, on Friday intercepted the sum of N32,400,000 in Lagos.
The money is suspected to have been earmarked for vote buying in Lagos, according to Wilson Uwujaren, EFCC Head of Media.
The spokesperson confirmed suspects involved have been taken into custody for further questioning.
EFCC Chairman, Abdulrasheed Bawa has implored all personnel deployed for election monitoring duties to show courage.
Bawa warned them not to give room for unscrupulous persons to undermine the integrity of the elections through financial inducement.
A tactical team of operatives are currently on ground in all the states of the federation and the FCT, the commission announced.
“Telephone hotlines have already been circulated through social media for members of the public to share information regarding financial malpractices,” Uwujaren added.
Naira swap crisis: Fed Govt not in breach of Supreme Court order, says Malami
The Federal Government said yesterday it was not in breach of the Supreme Court order restraining it from enforcing the February 10 time limit for the validity of old N200, N500 and N1,000 notes.
Attorney-General of the Federation and Minister of Justice Abubakar Malami gave the government’s position during a weekly ministerial briefing in Abuja.
Also yesterday, Speaker of the House of Representatives Femi Gbajabiamila and Ondo State Governor Rotimi Akeredolu restated their displeasure with the implementation of the Central Bank of Nigeria(CBN) naira redesign policy and fuel scarcity in the country.
While Gbajabiamila described naira and fuel scarcities as a “rigging” plot against the All Progressives Congress(APC) presidential candidate Asiwaju Tinubu, Akeredolu called on voters to brace the hardship caused them by the shortages and cast their votes for the former Lagos State governor tomorrow.
President Muhammadu Buhari had on February 16, 2023, directed the CBN to re-circulate the old N200 notes, thereby extending its validity till April 10.
This was in spite of the Supreme Court order that the three old denominations (N1,000, N500 and N200 ) should remain legal till it delivers judgment in the case filed by some states against the Federal Government. The verdict will be given on March 3.
The President’s broadcast and express exclusion of the N500 and N1,000 notes had since been flayed by the public and Senior Advocates of Nigeria(SANs).
Asked to comment on the alleged flouting of the Supreme Court order by the President, Malami said: “Your question can best be answered within the context of what constitutes a rule of law in the Nigerian situation.
“Where an order is made by a court, you have multiple options, but let me state before even addressing the issue of the options available at our disposal as a government.
“The fact is that we are not in breach of any order made by the court, inclusive of any order associated with the naira redesign. We are not in breach.
“I’m not a banker, but you have not gone to establish which bank is it that you have gone to present N1000 or N500 notes that have been rejected. So we are not in breach.
“But then, assuming we are in breach, the fact remains that this matter is sub-judice, as you rightly know. It’s being contested before the Supreme Court and when an order is made, you have multiple options within the context of the rule of law.
“One, you are entitled as a matter of right, if the facts and evidence support your position, to apply for setting it aside.
“The position of the law, legal jurisprudence is clear, once you are attacking and you seeking for a setting aside of an existing order of the court, cannot be said to be operating in breach when you presented your application for setting aside.
“If the court is not an apex court, you equally have a right of appeal and support the right of appeal with an application for a stay, of execution order. So the bottom line of what I’m trying to state is if the matter is sub-judice and within the context of the rule of law, we are doing the needful as a government, in terms of ensuring that the right of the government, within the context of the naira redesign, is protected.”
