The Supreme Court has nullified the ban on use of the old N200, N500 and N1000 banknotes as legal tenders.
The apex court held that the old Naira notes should be used alongside the redesigned currencies.
The court made the declaration on Friday while delivering judgment in a suit instituted by three states of the federation.
A seven-member panel of the apex court held that the old N200, N500 and N1000 notes remain legal tender until December 31, 2023.
They supreme court also faulted the entire policy of the CBN, saying the timing and implementation were defective.
In October 2022, Godwin Emefiele, CBN governor, announced the plan to redesign the naira to control money supply and aid security agencies in tackling illicit financial flows.
The redesigned naira notes were unveiled on December 23, 2022.
The deadline for the implementation of the policy was fixed for January 31, 2023, but it was further extended to February 10.
On February 3, a suit was initiated by Kaduna, Kogi, and Zamfara governments before the supreme court challenging the implementation of the policy.
Five days later, the supreme court restrained the CBN from giving effect to the deadline on the use of old notes following an ex parte application brought by the three states.
Thirteen (13) other states later joined the suit as co-plaintiffs. The states argued that the implementation of the policy has caused untold hardship for Nigerians.
The court also faulted President Muhammadu Buhari for introducing the demonization policy, without due consultation with the Council of States, the Federal Executive Council, the Civil Society and other relevant stakeholders.
In the lead judgement that was delivered by Justice Emmanuel Agim, the apex court accused President Buhari of disobeying its interim order that halted the full implementation of the new monetary policy.
Justice Emmanuel Akomaye Agim held that the President exhibited and took the disobedience to the highest peak with his broadcast of February 16 in which he allowed only N200 notes alone.
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