The Federal Government on Wednesday asked the Supreme Court to grant an extension of time for old naira notes to remain in circulation as a legal tender.
The government also wants the court to lift its March 3 order that the old naira notes should remain alongside the new notes till December 31.
In March, the Central Bank of Nigeria (CBN) had said old N200, N500, and N1,000 banknotes would remain legal tender till December 31, 2023.
It said the extension of time is necessary and it has not been able to print the volume of new notes that would enable it to phase out old currency before the December 31 order.
In the fresh application by the Attorney-General of the Federation, Lateef Fagbemi, the Federal Government is asking for a review of the court’s consequential order.
According to Fagbemi, “since the said consequential order was made, the federal government, in compliance with this honourable court’s order, directed the CBN to engage and has been engaging the respondents in their individual capacities and in their capacities as members of the National Council of State and National Economic Council with respect to the Naira redesign policy”.
“In between the time the order was made and now, there was a presidential election in the country which has led to a transition from the immediate-past government and the incumbent government which is just settling down,” he said.
“The incumbent government has, however, directed the Central Bank to come up, by a way of policy direction, with how the naira redesign policy will be addressed in full compliance with the order of this honourable court.
“Whilst working on the policy direction and due to the economic crisis being witnessed by the government of the federation and other factors beyond its control, the government of the federation to date has not been able to print the new 200, 500 and 1000 naira notes in the equal proportion of the old 200, 500 and 1000 naira notes sought to be recalled as consultation with critical stakeholders is still on-going on how best to approach the redesign policy.
The Federal Government further explained that should the Supreme Court decline its request to extend the period of circulation of old notes, the country stands the risk of descending into another national, economic and financial crisis as witnessed in the first quarter of the year when the naira redesign policy was being implemented under the former Central Bank Governor, Godwin Emefiele.
It asked the court to allow the old notes to be in use with the new notes until after it consults with stakeholders, pointing out that the economy may be in jeopardy once again because some Nigerians have started hoarding the old and new naira notes ahead of the December 31st timeline.
The government said it has been engaging the 10 plaintiff states in their capacities as members of the National Council of State and the National Economic Council.
The 10 plaintiffs headed for the Supreme Court in the interest of the public, leading to judgment by the apex court extending the circulation of the old notes till December 31.
The government was said to have realised that unless there is a fresh order from the Supreme Court, the old notes can no longer be in circulation after December 31.
The Supreme Court has fixed November 30 for a hearing.
