Buhari, CBN Should Obey Supreme Court On Old Naira – Economists

Posted by Thandiubani on Fri 03rd Mar, 2023 - tori.ng

The financial expert wondered how the N2.1 trillion allegedly withdrawn by the Central Bank of Nigeria would be re-circulated.

The Federal Government has been told to immediately obey Supreme Court’s judgement on the validity of the old naira notes.

The call was made by some leading economists in the country.

Recall that the apex court had today ruled that old naira notes are still a legal tender.

In an interview with DAILY POST on Friday, a financial expert, Gbolade Idakolo, said President Muhammadu Buhari should immediately direct the CBN governor to revert to the status quo.

“This is a welcome development; the naira redesign policy has shrunk the economy by over a trillion in business losses. Many SMEs have closed shops due to their direct dealings with cash. The policy increased hardship to the stressed population, and the Supreme Court judgement is a high relief.

“The pronouncement of the President-elect and his PCC members have already stated that he would reverse the policy. The President should immediately direct the CBN governor to revert to the status quo ante.”

Also, an economist, Paul Alake, has disclosed that there needs to be more clarity on how the old N500 and N1000 notes return into circulation.

He stated this on Friday during an Arise television interview in his reaction to the Supreme Court judgement on the validity of old naira notes till 31 December.

The financial expert wondered how the N2.1 trillion allegedly withdrawn by the Central Bank of Nigeria would be re-circulated.

He stated that the judgment would not be impactful if the old notes were not released by the CBN back into the banking system.

“Here is the question, where is the money? It has been said old and new notes could be spent concurrently. Recall that the Central Bank of Nigeria said N2.1 trillion has been withdrawn from the economy.

“Would there be a way to enforce that old naira notes are circulated into the economy again? What the court has said is clarity on who will release the old naira notes back into the financial systems.

“If the money is not released in the financial sector by the Central Bank of Nigeria, the judgement may not have any effect.”

Nigerians have continued to suffer from the hardship brought upon them by naira scarcity. However, there is hope that the Supreme Court’s decision would restore respite.