Banks disobey Supreme Court order, reject old Naira notes

Most bank customers were confused on Monday as commercial banks rejected the old Naira notes they wanted to deposit, despite the Supreme Court ruling suspending the February 10 deadline issued by the Central Bank of Nigeria (CBN).

Newsflash Nigeria reports that the Supreme Court had last Wednesday temporarily halted the move by the Federal Government and the Central Bank of Nigeria to ban the use of the old naira notes with effect from February 10, 2023.

The order from the appellate court followed the unfortunate riots in several parts of the country emanating from the non-availability of the newly redesigned Naira notes.

Recall that the CBN had fixed January 31st as the deadline for the exit of the old Naira notes of N200, N500, and N1,000 but the apex bank later bowed to pressure and extended the swapping period to February 10.

Some state governors elected under the platform of the All Progressives Congress APC who alleged that the CBN policy was targeted against the party’s presidential candidate, Bola Tinubu dragged the Federal Government to court.

The governments of Kogi, Kaduna, and Zamfara States last week, filed a lawsuit before the Supreme Court, seeking a restraining order to stop the FG from executing the February 10 deadline.

In a Suit Number: SC/CS/200/2023, the states asked the apex court to declare that the President of Nigeria, cannot unilaterally direct the Central Bank of Nigeria to recall the new N200, N500, and N500 old Bank notes without recourse to the Federal Executive Council and National Economic Council, respectively.

They also prayed a mandatory order seeking a reversal of the Federal Government policy to recall the N200, N500, and N1,000 notes from circulation, for affecting the economic well-being of over 20 million of its citizens.

The applicants also sought mandatory order, compelling the Federal Government to reverse the Naira redesign policy for alleged failure to comply with the 1999 (as amended) constitution of the Federal Republic of Nigeria.

The ruling last Wednesday on the matter, the Supreme Court in a seven-member panel led by Justice John Okoro halted the move by FG and the CBN to end the circulation of old Naira notes across the country.

The matter was, however, adjourned to February 15, 2023, for a hearing of the substantive suit

However, Deposit Money Banks (DMBs) across the country on Monday started rejecting the old naira notes despite the Supreme Court order extending the deadline till tomorrow, February 15 when action would most likely be taken.

Newsflash Nigeria learned that 36 states and the Federal Capital Territory (FCT) indicate that the commercial banks were turning down customers who had walked into their branches to deposit old notes collected over the weekend.

 “I went to First bank in Akute and I was told by bank officials that they are not collecting the old money, only New notes, even the pos operator beside my house called someone she knows first and she was told they are not collecting the old notes,” a bank customer told Newsflash Nigeria.

Newsflash Nigeria correspondents, who visited commercial banks in Lagos, Abuja, Kwara, Ondo, and Bayelsa states amongst others, observed that the old notes were rejected by the banks.

 “I was shocked that the old notes were rejected at the bank today. I took the money I had with me but the bank rejected the old N500 notes,” lamented Mr. Adefemi Samuel, who visited one of the old-generation banks in Ikeja.

The situation in Bayelsa State was different as almost all the commercial banks in Yenagoa, the state capital, shut down operations over the alleged security threats to the banks.

The commercial banks around the Amarata axis of Yenagoa, the state capital, were totally closed down with only security men on duty, while Automated Teller Machines (ATM) were not dispensing, as no cash was stored inside.

Similarly, many commercial banks in Ondo State rejected the old currencies from customers yesterday. 

According to our reporter in Akure, many customers who besieged the Jaiz Bank at Alagbaka quarters of the state capital said they were advised by the official to take their old notes to the CBN. 

Another customer, Mr. Owamoyo Tolani explained that the old notes with him were also rejected at one of the commercial banks located in Owo. 

Top officials of UBA, Jaiz, and FCMB in Ilorin confirmed that all banks in the state have officially started to reject the old notes.

A top management staff of one of the new-generation banks also added that the banks were waiting on the CBN for the next line of action.

He said the banks were not parties in the suit filed by the governors so they were waiting for the CBN to issue a directive on the order.

The majority of Zenith Bank branches in the Federal Capital Territory have been shut down due to scarcity of cash, the most Zenith banks were under lock and key with bold notice of closure on the gates.

However, the few branches working were filled with massive crowds who were left unattended due to network glitches and scarcity of cash.

At one of the branches in the Wuse area of Abuja, the branch manager said most of their branches in the FCT were shut down, and said it was not necessary to open several branches without cash to service customers.

While addressing the mammoth crowd at the entrance of the bank, he said, “Only customers with fund transfer slips will be serviced as the branch currently does not have cash supply from CBN for the day, but will attend to customers and load ATMs as soon as cash comes.”

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