The federal government is seeking an extension of the deadline permitting the circulation of old N200, N500, and N1,000 banknotes, urging the Supreme Court for more time beyond the current December 31st cutoff.
In a recent application, the Attorney General of the Federation, Lateef Fagbemi, highlighted the government’s inability to print sufficient new banknotes to phase out the old currency by the year’s end. Fagbemi cautioned that maintaining the existing deadline could potentially lead Nigeria into an economic crisis.
Fagbemi disclosed concerns about citizens hoarding both old and new notes in anticipation of the impending demonetization. Consequently, the Federal Government strongly advocates for the extension of the circulation of old bills into 2023 to ensure market stability.
The application requests a review of the Supreme Court’s March 3rd judgment, which granted the Central Bank the authority to exchange old banknotes until December 31st. Instead, the government proposes extending circulation and redemption until a time when “the government decides to bring the circulation of the old versions to an end,” following further consultations.
The Supreme Court is scheduled to hear the case on November 30th. Previously this year, the Court nullified the CBN’s attempt to cease the use of old notes in February after ten states sued the federal government, citing insufficient public awareness.
