Some deposit money banks have started paying out the old notes following the Supreme Court decision that extended the validity of the Central Bank of Nigeria (CBN) currency redesign policy until December.
According to research conducted by a few sources, some commercial banks in the City of Kano and Abuja have begun distributing the previous N500 and N1000 notes.
While certain parts of Assurance Trust Bank (GTB) gave out old notes, some others like Polaris bank in Abuja had not started as of the time this report was recorded.
“As we do not have any new directive on what to do yet,” a staff member told our reporter, “only the old N200 notes are still being issued.”
According to GTB sources, their management gave them the order to start paying old notes in their vault.
According to the source, “the problem is that taking the old notes from customers will require the CBN form because we don’t have any directive in that regard.”
Daily Trust was unable to confirm whether the CBN had officially issued a bank-wide directive instructing the Deposit money bank to comply at the time of this report.
Experts in the field of economics have urged President Muhammadu Buhari to instruct the CBN Governor, Godwin Emefiele, to abide by the ruling regarding the validity of the old naira notes.
Paul Alake, an economist, had stated that there should be more clarity regarding how the old N500 and N1000 notes will be reinstated into circulation.
He stated that the judgment would not have any effect unless the CBN returned the old Notes to the banking system.
“The judgment may not have any effect if the Central Bank of Nigeria does not release the money in the financial sector.”
A seven-member justice panel headed by Justice Inyang Okoro ruled unanimously on Friday that President Muhammadu Buhari’s directive to the Central Bank of Nigeria (CBN) to redesign and withdraw old N200, N500, and N1,000 notes without consulting the states, the Federal Executive Council (FEC), the National Council of State, or other stakeholders was unconstitutional.
The supreme court noted that, as required by the CBN Act, no reasonable notice was provided prior to the policy’s implementation.