By Tony Obiechina, Abuja
The International Monetary Fund (IMF) has called on the Central Bank of Nigeria (CBN) to extend the deadline on the ban of the old naira notes due to the scarcity of the new ones.
The IMF made this known in a statement signed by it’s Resident Representative for Nigeria, Ari Aisen on Wednesday.
This is just as the Supreme Court on Wednesday, fixed February 15 for hearing on the main application challenging the policy of the CBN regarding the usage of the old naira notes.
A seven-member panel led by Justice John Okoro, adjourned for hearing after temporarily halting the February 10 naira swap deadline of the CBN, in an exparte motion instituted by the governments of Kaduna, Kogi and Zamfara states.
In the statement, Aisen said that the IMF encourages an extension in the deadline due to the hardships which the scarcity of the new notes has presented.
“In light of hardships caused by disruptions to trade and payments due to the shortage of new bank notes available to the public, in spite of measures introduced by the CBN to mitigate the challenges in the banknote swap process, the IMF encourages the CBN to consider extending the deadline, should problems persist in the next few days leading up to the February 10, 2023 deadline,” she said.
The Supreme Court on Wednesday temporarily halted the February 10 deadline given by the CBN after Kaduna, Kogi, and Zamfara States asked the court to restrain the bank from implementing the deadline.
The states argued that the deadline given by the CBN that the old N200, N500, and N1000 notes would cease to be legal tender is against the well-being of ordinary Nigerians.
Meanwhile, a university don, Professor Uche Uwaleke has advised the CBN to obey the apex court order implement the February 10 deadline for the old notes to cease as a legal tender.
The capital market professor said in a statement on Wednesday that as a responsible institution, the apex Bank should obey the apex court order.
He said, “as a law abiding and responsible Institution, I expect the CBN to temporarily halt the implementation of the February 10, deadline for the old 200, 500 and 1000 Naira notes to cease being a legal tender as directed by the Supreme Court pending the determination of a notice on notice on in respect of the issue on February 15.
“This period is still within the 7 days grace period lasting till February 17 which the CBN had earlier announced for the old notes to be returned to the CBN.
“All over the world, especially where Central Banks are independent, the conduct of monetary policy is their exclusive preserve- a responsibility not encumbered by either the Executive arm or the Judiciary.
“It would amount to erosion of the apex Bank’s independence with dire consequences for the economy if the Supreme Court eventually gives a ruling next week that permanently cancels the currency redesign policy.
“Rather than a permanent halt, what is required is for the CBN to join hands with stakeholders to fine-tune it in view of its many laudable objectives else we end up throwing away the baby and the bath water.
“It now behoves the CBN to assemble a good legal team to argue its case on the strength of the CBN Act of 2007”.
