Several Nigerians had difficulty paying for products and services this week because retailers, motorists, and company owners refused to take old Naira notes in anticipation of official authorisation from the Central Bank of Nigeria (CBN).
Nigerians who were paid with old N500 and N1000 notes by banks expressed their frustration in repeated interviews with OBALAND TV, despite the CBN and the Nigerian government remaining silent.
Due to the negative impact of the policy, the Supreme Court ordered last Friday that the Central Bank of Nigeria (CBN) must extend the usage of old banknotes until December 31.
A seven-member judicial panel chaired by John Okoro unanimously directed the CBN to continue accepting old currencies from Nigerian citizens.
The court also ruled that President Muhammadu Buhari’s decision to the Central Bank of Nigeria (CBN) to withdraw existing notes and redesign new banknotes without adequate consultation was unconstitutional.
The CBN issued new N200, N500, and N1000 notes in December, causing the previous notes to be phased out of circulation. This strategy caused significant instability throughout the country, with protests erupting in several places as Nigerians struggled to conduct business and make cash payments in daily transactions.
Following the Supreme Court’s decision on the naira policy last Friday, some commercial banks in various parts of the country started issuing old N500 and N1000 notes to their customers on Monday. Experts predicted that the development would provide relief to many Nigerians whose businesses had suffered due to a lack of cash.
However, neither the Central Bank of Nigeria (CBN) nor the Nigerian government has responded to the new development since the Supreme Court issued its decision in the case.
The silence of these significant institutions has left many Nigerians perplexed about the ruling’s consequences and how the uncertainty may affect the country’s financial environment.
While criticizing the recent ripple effect of the cash constraint on sales, Obaland discovered that shops around Abuja, Edo state and several other states refused to accept outdated naira notes from their customers.
Because of the Supreme Court order, some people have been unable to spend old notes they had previously received.
OBALAND MAGAZINE has learned that, in addition to merchants and other service providers, food stores and gas stations have refused to accept the old notes as of Wednesday.
Dickson Durotimi, a phone repairer at the Wuse market, told Newsmen that he will not receive the old note until the government confirms it and other traders start receiving it.
“I will not be the first to acquire it when I know that it will be useless to me. Folks at Banex (a massive facility where phones and accessories are sold) aren’t collecting stuff, so this is where I get my market,” he explained.
“I cannot risk it; even though banks are providing it, we are all waiting for the CBN’s approval.”