Sanwo-Olu Directs Government Agencies Not To Reject Payments Made With Old Naira Notes

Lagos State Governor, Babajide Sanwo-Olu, has asked all agencies of the state government not to reject payments made with old Naira banknotes by members of the public.

On March 3, the Supreme Court had nullified the ban on use of the old N200, N500 and N1000 banknotes as legal tenders.

In a unanimous decision by a seven-member panel of Justices, the court had ordered that the old banknotes shall continue to be used alongside the new banknotes till December 31, 2023.

The Central Bank of Nigeria (CBN) had redesigned the N200, N500 and N1,000 denominations, and set January 31 as deadline for their legal tender status. But had to extend the deadline by 10 days (February 10) to allow for circulation of the new banknotes and mop up the old ones.

However, as a result of the challenges people are facing to access the new banknotes, governors of three All Progressives Congress -led states of Kaduna, Kogi, and Zamfara, filed an an exparte motion at the Supreme Court to restrain the CBN and the Federal Government from implementing the February 10 deadline of the old banknotes as legal tender, which was granted.

Despite the Supreme Court interim order restraining the Federal Government and the CBN from implementing the February 10 deadline, President Muhammadu Buhari on February 16, during a national broadcast, granted a 60 day extension for the circulation of the old N200 note, discarding old N500 and N1,000 banknotes.

Buhari’s silence on the recent judgement has put Lagosians on the edge.

To play safe, some of the residents told THE WHISTLER recently that they would not accept the old banknotes, except N200, until the President speaks on the apex court judgement.

In a statement on Sunday by the state Commissioner for Information & Strategy, Gbenga Omotoso, Sanwo-Olu said that going by the Supreme Court judgement, there is no reason to reject the old banknotes.

The Governor called on retailers to begin to accept the old banknotes, adding that it is illegal to reject the banknotes.

“The Lagos State Government has noted the hardship sparked by the Naira redesign policy, which has affected business and commercial activities,” the statement said.

“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 Babajide 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,” the statement concluded.