Nigerian Banks Resume Dispensing Recently Demonetized Naira Banknotes
According to local reports, Nigerian financial institutions have begun abiding by a Supreme Court ruling that invalidated the Central Bank of Nigeria (CBN)’s demonetization of the 1,000, 500 and 100-naira banknotes. According to the court, Nigerian residents will continue to use the demonetized banknotes until the end of the year.
Court Criticizes Outgoing Nigerian President
Nigerian financial institutions have reportedly started dispensing the recently demonetized 1,000, 500 and 100-naira banknotes just days after the nation’s highest court ruled against the CBN’s so-called naira redesign policy. According to a Bloomberg report, some of the country’s leading financial institutions such as Guaranty Trust Holding Co. Plc and Sterling Bank Plc were already dispensing the old notes on March 6.
In its ruling delivered on March 3, 2023, the Nigerian Supreme Court slated the central bank’s hasty demonetization process. The court also accused the outgoing president Muhammadu Buhari of undermining the country’s democratic credentials after his government failed to abide by a provisional order that barred it from proceeding with the demonetization process.
While the CBN has not issued a formal statement following the Supreme Court’s ruling, the CEO of Sterling Bank, Abubakar Suleiman, is quoted in the Bloomberg report explaining why banks have chosen to comply with the ruling.
“The central bank is abiding by the supreme court’s ruling, as are the banks. I don’t think we need a directive to obey the court,” the executive reportedly said.
Demonetized Banknotes to Remain Legal Tender Until End of Year
By redistributing the old banknotes, Nigerian banks not only comply with the court ruling but will also placate dissatisfied bank customers that failed to withdraw cash in the days leading to the Feb. 10 demonetization deadline. As previously reported by Bitcoin.com News, the CBN’s refusal to extend the deadline, as well as banks’ inability to dispense the newly designed banknotes, helped to spark violent street protests.
Despite the pleas by members of his own political party, All Progressives Congress (APC) president Buhari insisted in a televised address that his government still supported CBN’s naira redesign policy and that the demonetization deadline would not be extended. However, in its ruling, the Nigerian supreme court declared that all the old naira banknotes would remain legal tender until the end of the year.
Register your email here to get a weekly update on African news sent to your inbox:
Tags in this story Abubakar Suleiman, All Progressives Congress, Central Bank of Nigeria (CBN), legal tender, naira demonetization, naira redesign, President Muhammadu Buhari, Sterling Bank
What are your thoughts on this story? Let us know what you think in the comments section below.
Blockchain.com Shutters Asset Management Subsidiary Amid Crypto Winter and Industry Turmoil NEWS | 4 hours ago Signature Bank Considered a Buy as Last Major Bank Standing in Crypto Market Amid Silvergate and SVB Troubles NEWS | 14 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons
Central Bank of Bolivia Selling Dollars Directly to Citizens as Devaluation Fears Rise
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Read disclaimerShow comments
More Popular News
In Case You Missed It
Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days
Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized … read more.
SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Iran to Increase Penalties for Unauthorized Cryptocurrency Mining Ethereum Foundation’s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether