The old naira notes remain legal tender, according to the Supreme Court, but for how long? Until the case filed by Kaduna, Kogi and Zamfara states is heard and determined, whenever that is.
Yesterday, the Supreme Court said there was no need to renew the subsisting order. This is because there was no time-limit to it.
A week ago, the Supreme Court granted the interim injunction restraining the Federal Government and its agencies from enforcing the February 10 deadline for the use of old naira notes.
Justice John Okoro, leading a seven-member panel, held that the states’ ex-parte application raised issues of real urgency requiring the court’s intervention.
He held: “After careful consideration of this ex-parte application and the grounds in support of same, this court finds that there is a real urgency for this court to intervene by the grant of this application. Accordingly, this application is hereby granted as prayed.
“That is to say, an order of interim injunction restraining the Federal Government of Nigeria, either by itself or acting through the Central Bank of Nigeria (CBN) and/or the commercial banks, its agents, agencies, corporations, ministries, parastatals, organisations or through any person or persons (natural and artificial) howsoever, from suspending or determining or ending on the 10th of February 2023 the timeframe within which the now older versions of the 200, 500 and 1000 denominations of the naira may no longer be legal tender, pending the hearing and determination of the plaintiffs/applicants’ motion on notice for interlocutory injunction.”
Justice Okoro underscored the validity of the order yesterday.
Counsel for the plaintiffs, Abdulhakeem Mustapha (SAN), had informed the Justices that the Federal Government and CBN failed to comply with the order.
He said he filed a notice of non-compliance with the order because banks were rejecting the old notes, and urged the court to protect its dignity.
“We want the court to renew the order for parties to be properly guided,” he said.
Justice Okoro asked Mustapha to file a proper application that captures his complaints, which invariably may include initiating contempt proceedings against the alleged contemnors.
The Justice then clarified that there was no need for a renewal of the order.
He noted that since the order was made pending the determination of the motion for an injunction, it remained in force since the motion has not been heard.
In effect, even if the motion is heard on February 22, the order will remain binding and old notes will remain legal tender until the Justices deliver a final ruling or judgment on the motion.
The wider implication is those rejecting the old banknotes are in contempt of the Supreme Court order.
Also, litigants can challenge in court any rejection of the old notes because they remain legal tender, in line with the Supreme Court order.
Senior lawyers have urged the CBN to issue a directive to banks to continue to accept the old notes, which appears not to have been done.
Citizens can take legal action against banks that refuse to accept old notes and seek damages because the Supreme Court order that extended the lifespan of old notes beyond February 10 remains in force until set aside.
The eminent professor of law, Itse Sagay (SAN), said: “Virtually all authorities in Nigeria are bound to enforce Supreme Court orders, whether right or wrong.
“You can always apply to have an order set aside if you have a good reason.”
Other SANs said the same thing: the respondents can challenge the order, but they, especially the CBN, must obey it first.
That is what is expected of a society that operates by the rule of law.