Keeping old naira notes will encourage vote buying, CBN tells court
By-Hakeem Gbadamosi, Akure
The Central Bank of Nigeria ((CBN) has justified its decision not to extend the expiry date of old naira banknotes, saying it was designed to save national democracy and discourage vote buying during of the next presidential election.
CBN's attorney, O. M. Atoyebi (SAN) and Co., gave these reasons in a counter affidavit in a lawsuit brought against the apex bank by a group, Social Rehabilitation Grace and Supportive Initiative (SRG) led by a Nigerian-American born physician, Dr Marindoti Oludare.
The group had dragged the CBN to a Federal High Court in Akure, asking the court to compel the CBN to extend the expiration date of the old Naira notes by six months, while the apex bank begged the court to dismiss the lawsuit, saying the plaintiffs had no justifiable reason to file it.
However, the CBN's lawyer in the interlocutory injunction said that the CBN opposes "the extension (of the expiry date of the old naira banknotes of N200, N500 and N1000), saying that it would leave room for vote buying and undermine the next election.
He also added that "expanding speed will jeopardize the fight against fraud, corruption, and criminal activity perpetrated with the use of legacy currencies." He specifically cited the crime of festering kidnapping, saying that a change of banknotes will end it.
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Against the SRG's reference to the currency change in India in 2016 in which the group said that Indians had had enough time to replace the old Indian rupees, the CBN differed in its narration of the Indian experience.
It read: "The Government of India announced the change of its legal tender on 8th November 2016 and was implemented within two days.
"The entire citizenry of India, approximately 1.417 billion, have strictly adhered to the deadlines, which has led to a positive improvement in the Indian economy."
The SRG argued that the CBN had acted beyond its powers by setting a deadline for the expiration of old Naira notes.
The group told the court that "Although we know that the CBN has the right to denominate the Naira, it does not have the right to erase the value acquired by individuals.
"Former President Goodluck Jonathan's administration also redesigned the banknotes, after which the new and old naira notes were legal tender for over two years before the old notes were withdrawn from traffic".
Oludare, the first plaintiff, also said: "When I visited Nigeria from the United States of America on December 29, 2022, I visited the ATM operated by First Bank of Nigeria Plc at Lagos to make cash withdrawals but the machine only dispensed old banknotes."
He said the CBN also failed to provide a means for Nigerians residing abroad to exchange their old banknotes.
The SRG commented that the time granted by the CBN could not be considered a reasonable time, "as stated in Section 20(3) of the CBN Act 2007, having regard to the population of the countries, which according to Worldometer elaboration of the United Nations data amounts to approximately 219,375,886; approximately 2.64% of the world's population".
The group claimed that setting a hasty expiry date for old naira notes at a time when Nigeria is preparing for a major election smacks of mischief and could derail a smooth transition from government to government. 'other.
He said India did the same in 2016, but sought a cease and desist order so that the old banknotes would cease to be legal tender. And rupees were readily available in all banks during this period.
"Cessation of liability is not in CBN law, so they have no right to cease liability for these old tickets," the group said.
In the lawsuit, therefore, the four plaintiffs, namely Oludare, Omoyele Ishola and Demola Obadofin, requested the court to extend the expiration of the old naira banknotes by six months on February 10, 2023.
The Petitioners also seek, among other things, an interim injunction enjoining "the Respondents and their assigns, agents or servants from enforcing the deadline of February 10, 2023, by which the former N200, N500 and N1000 banknotes cease to be legal tender, pending the hearing and determination of the motion on notice".
The plaintiffs also add that the court should issue "an order requiring the defendant to extend the submission of the old N200, N500 and N2000 banknotes, for at least six months before they are finally called and cease to be issued. 'be a legal tender title, pending hearing and decision of the motion on notice'.
The app...
By-Hakeem Gbadamosi, Akure
The Central Bank of Nigeria ((CBN) has justified its decision not to extend the expiry date of old naira banknotes, saying it was designed to save national democracy and discourage vote buying during of the next presidential election.
CBN's attorney, O. M. Atoyebi (SAN) and Co., gave these reasons in a counter affidavit in a lawsuit brought against the apex bank by a group, Social Rehabilitation Grace and Supportive Initiative (SRG) led by a Nigerian-American born physician, Dr Marindoti Oludare.
The group had dragged the CBN to a Federal High Court in Akure, asking the court to compel the CBN to extend the expiration date of the old Naira notes by six months, while the apex bank begged the court to dismiss the lawsuit, saying the plaintiffs had no justifiable reason to file it.
However, the CBN's lawyer in the interlocutory injunction said that the CBN opposes "the extension (of the expiry date of the old naira banknotes of N200, N500 and N1000), saying that it would leave room for vote buying and undermine the next election.
He also added that "expanding speed will jeopardize the fight against fraud, corruption, and criminal activity perpetrated with the use of legacy currencies." He specifically cited the crime of festering kidnapping, saying that a change of banknotes will end it.
Related News
Against the SRG's reference to the currency change in India in 2016 in which the group said that Indians had had enough time to replace the old Indian rupees, the CBN differed in its narration of the Indian experience.
It read: "The Government of India announced the change of its legal tender on 8th November 2016 and was implemented within two days.
"The entire citizenry of India, approximately 1.417 billion, have strictly adhered to the deadlines, which has led to a positive improvement in the Indian economy."
The SRG argued that the CBN had acted beyond its powers by setting a deadline for the expiration of old Naira notes.
The group told the court that "Although we know that the CBN has the right to denominate the Naira, it does not have the right to erase the value acquired by individuals.
"Former President Goodluck Jonathan's administration also redesigned the banknotes, after which the new and old naira notes were legal tender for over two years before the old notes were withdrawn from traffic".
Oludare, the first plaintiff, also said: "When I visited Nigeria from the United States of America on December 29, 2022, I visited the ATM operated by First Bank of Nigeria Plc at Lagos to make cash withdrawals but the machine only dispensed old banknotes."
He said the CBN also failed to provide a means for Nigerians residing abroad to exchange their old banknotes.
The SRG commented that the time granted by the CBN could not be considered a reasonable time, "as stated in Section 20(3) of the CBN Act 2007, having regard to the population of the countries, which according to Worldometer elaboration of the United Nations data amounts to approximately 219,375,886; approximately 2.64% of the world's population".
The group claimed that setting a hasty expiry date for old naira notes at a time when Nigeria is preparing for a major election smacks of mischief and could derail a smooth transition from government to government. 'other.
He said India did the same in 2016, but sought a cease and desist order so that the old banknotes would cease to be legal tender. And rupees were readily available in all banks during this period.
"Cessation of liability is not in CBN law, so they have no right to cease liability for these old tickets," the group said.
In the lawsuit, therefore, the four plaintiffs, namely Oludare, Omoyele Ishola and Demola Obadofin, requested the court to extend the expiration of the old naira banknotes by six months on February 10, 2023.
The Petitioners also seek, among other things, an interim injunction enjoining "the Respondents and their assigns, agents or servants from enforcing the deadline of February 10, 2023, by which the former N200, N500 and N1000 banknotes cease to be legal tender, pending the hearing and determination of the motion on notice".
The plaintiffs also add that the court should issue "an order requiring the defendant to extend the submission of the old N200, N500 and N2000 banknotes, for at least six months before they are finally called and cease to be issued. 'be a legal tender title, pending hearing and decision of the motion on notice'.
The app...
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