The Supreme Court recently issued an interim injunction preventing the Central Bank of Nigeria from implementing the deadline for the exchange of old Naira notes for new ones on the 10th of February 2023. This was due to a suit instituted by Kaduna, Zamfara, and Kogi State over the scarcity of cash as a result of the CBN Naira redesign policy.
The states expressed their concern over the impact the policy, is having on the residents and sought a restraining order from the Supreme Court to prevent the Federal Government and the CBN from implementing the policy. The states argue that there has been a shortage in the supply of new naira notes, which has made it difficult for citizens to access them and go about their daily activities. They also contend that the ten-day extension by the Federal Government is insufficient to address the challenges faced by Nigerians swapping their old Naira notes for the new currency.
The suspension of the deadline for the swapping of old Naira notes for new ones on small businesses in Nigeria is that it provides them with additional time to adjust to the change. Since small businesses often operate on tight budgets, they may not have had sufficient time to exchange their old money. Therefore, the suspension of the deadline could allow them to continue using their old Naira notes and reduce the immediate financial burden of having to exchange all of their cash reserves.
Moreover, the additional time could help to mitigate the scarcity of new Naira notes, which has been a challenge for many small businesses. This could reduce the difficulty of accessing new Naira notes and enable small businesses to carry out their daily operations in the meantime.
This development will likely have an impact on businesses in Nigeria, especially those that rely on cash transactions. The outcome of the case, which has been adjourned to the 15th of February 2023, will be crucial in determining the future of the CBN Naira redesign policy and its effects on businesses in the country.
