New Naira: Businesses crippled as cash crunch persist despite Supreme Court order

Tgpbaze Mobile App

New Naira: Businesses crippled as cash crunch persist despite Supreme Court order

Businesses and other economic activity are still experiencing setbacks as the cash constraint continues to plague the country, despite the Supreme Court’s judgment extending the deadline for old Naira notes to stay in circulation.



According to Tgpbaze, the Federal Government of Nigeria and the Central Bank of Nigeria’s plan to outlaw the use of the old naira notes with effect from February 10, 2023, was temporarily delayed by the Supreme Court on Wednesday.

The ruling from the appeal court came after regrettable riots broke out in numerous areas of the nation because the newly redesigned Naira notes weren’t readily available.

Remember that the CBN had set a deadline of January 31st for the withdrawal of the old Naira notes (N200, N500, and N1,000). However, the apex bank eventually gave in to pressure and extended the switching period to February 10.

All Progressives Congress (APC)-aligned state governors who claimed that Bola Tinubu, the party’s presidential candidate, was the goal of the CBN policy sued the federal government.

Last week, the administrations of the states of Kogi, Kaduna, and Zamfara petitioned the Supreme Court for a restraining order to prevent the FG from carrying out the February 10 deadline.

In a decision on the issue on Wednesday, a seven-member Supreme Court bench chaired by Justice John Okoro put a stop to the Federal Government’s and the Central Bank of Nigeria’s plan to stop issuing old Naira notes nationwide.

However, the case was postponed until February 15, 2023, so that the substantive lawsuit could be heard.

Tgpbaze, however, learned on Saturday that the extension has yet to have any impact on the challenges that Nigerians experience when attempting to get cash and prevent their companies from further collapsing.

Due to a shortage of cash, several Point of Sale (POS) businesses have stayed closed. Numerous ATMs in the Federal Capital Territory, or FCT, Abuja, were found by DAILY POST to not be dispensing cash in numerous areas.

Remember when several banks closed their doors on Friday due to a lack of cash and the threat of unrest from irate customers?

All attempts to obtain some cash on Friday to maintain his company, according to POS operator Mr. Duke Onyebe, who talked to Tgpbaze in Abuja, were unsuccessful.

He claims that individuals are actively selling and profiting from Naira notes.

“Only those selling the new Naira notes have cash in FCT,” he asserted. When banks consistently inform us that there is no money, we are left wondering where they are getting it from.

“If you explore a lot of Abuja, you might not be able to discover a POS store that is open right now. Right now, nobody has any money.

The Supreme Court’s efforts to extend the period in which outdated notes can still be used in commerce, according to a Zenith bank employee who asked to remain anonymous, may not result in any changes.

She claims that commercial banks have received and forwarded the majority of the old currencies to CBN.

“They declared that the old and new Naira notes should coexist, but the real question is, do people still have the old notes,” she asked. only a few.

“Banks have all received the notes. How many of our clients will take outdated banknotes? How will the extension of previous notes improve the situation if many won’t? The CBN merely requires extra printing.

According to Tgpbaze, a shortage of money has kept transportation and other operations from moving forward in the FCT and other regions of the nation.

“On Friday, I was left trapped in the Maitama office due to a lack of money. Since I didn’t have any cash on me and my transfer wasn’t working, I was unable to take public transportation or order an Uber.

“I contacted my husband and explained the situation to him. He stated he had been waiting in line for petrol at the fuel station for hours. Monica Adikwu, a public servant, bemoaned, “I had no choice but to wait till he returned and took me up at practically midnight.

However, the National Council of State asked the governor of the central bank to act quickly to stop the shortage of currency across the country at a meeting with President Muhammadu Buhari and Goodwin Emefiele on Friday.

The council asked the CBN to take more steps to guarantee that there is enough money moving through the system to lessen the harsh reality of the policy.


Do you find Tgpbaze useful? Click here to give us five stars rating!


Join the Discussion

Be the first to comment

Leave a Reply

Your email address will not be published.


This site uses Akismet to reduce spam. Learn how your comment data is processed.