EKO NEWS
Sanwo-Olu To Lagos Businesses: It’s Illegal To Reject Old Naira Notes
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The CBN introduced a naira redesign policy that affected the old N200, N500, and N1000 notes late last year.
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The policy resulted in a cash shortage that continues to affect Nigerians nationwide.
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The cash shortage forced some states, including Lagos, to sue the federal government and they secured a Supreme Court order that upheld the validity of the old naira notes till December 31, 2023.
Eko Hot Blog reports that Lagos State Governor, Babajide Sanwo-Olu, has asked business owners in the state to accept transactions with old naira notes.
Sanwo-Olu made the call late Sunday evening according to a statement issued by Lagos Commissioner for Information & Strategy, Gbenga Omotoso.
EDITOR’S PICKS
The call comes after the Supreme Court ruled that the old N200, N500, and N1,000 notes are valid as legal tender until December 31, 2023.
Following the apex court verdict, some commercial banks started issuing the old naira notes to customers.
The old N200, N500, and N1000 notes
However, some businesses and persons have been rejecting the old notes amid the refusal of the Central Bank of Nigeria (CBN) and the federal government to clarify their positions publicly.
Reacting to the situation, Omotoso said it is the position of the Lagos government that there is no reason to reject the old naira notes after the Supreme Court nullified the CBN’s deadline.
The government spokesperson said it is therefore illegal to reject the old notes.
He also advised all agencies of the Lagos government not to reject payments made with the old currency.
“The Lagos State Government has noted the hardship sparked by the Naira redesign policy, which has affected business and commercial activities,” the statement reads.
“There is no reason to reject the old notes, going by the Supreme Court judgement delivered on March 3, 2023.
“The apex court declared that ‘no reasonable notice was given as required by Section 20(3) of the CBN Act,’ noting that the public only became aware of the policy through press remarks, which cannot qualify as a notice to the public.
“The court maintained that the policy has impeded the functions of State governments, pointing out that the directive that stops the use of the old notes is illegal, unconstitutional, null and void.
“Governor Babjide Sanwo-Olu has, therefore, called on business owners, especially retailers, to accept the old N500 and N1,000 notes – in line with the Supreme Court judgement that the currency remains legal tender until December 31, 2023. It is illegal to reject the notes.
“All agencies of the Lagos State Government are advised not to reject payments made with the old currency by the public.”
FURTHER READING
Sanwo-Olu stopped short of threatening the arrest of Lagos business owners who reject the old naira notes, a stark contrast to the threats issued by the Ekiti and Kogi state governments.
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