On Friday, the Supreme Court invalidated the Naira redesign policy, saying it was not done with due consultation and was not in line with constitutional provisions.
The apex court then ordered that the old Naira notes continue to be used alongside the new Naira notes until December 31, 2023.
The judgement set aside the February 10, 2023 deadline of the Central Bank of Nigeria (CBN).
The court also held that the three-month timeline was unconstitutional because it was not in accordance with the Central Bank of Nigeria Act.
Besides, the apex court argued that President Muhammadu Buhari usurped the powers of the CBN when he issued the directive banning the old naira notes of N1,000, N500 and N200 notes from February 10, 2023.
In delivering judgement, the court considered the defendants’ argument that it lacked jurisdiction to decide the case.
Justice Agim stated that the act of the president and government of Nigeria is an act of the federation.
The court held that the dispute is between the states and the government of the Federation and within the court’s original jurisdiction.
It held that the federation’s government should have held adequate consultation to avoid massive government operations and trade disruption.
It invalidated the argument that the CBN was the proper party to be sued, maintaining that it was not the action of the CBN that was being challenged but the validity of the decision of the President to redesign the naira, release the new notes into circulation, and withdraw the old notes without consultation with Nigerians through the Council of States and the National Economic Council.
The court held that the CBN does not have to be joined as a party in the suit as the CBN had no power to carry out the policy without the president’s directive and that the suit is not an action against the banks or the CBN.
