Economy
Supreme Court orders old N200, N500, N1,000 notes to remain legal tender
The Supreme Court on Friday ordered the Federal Government to allow the old Naira notes to continue as legal tender until Dec. 31, 2023. Justice Emmanuel Agim, who read the lead judgment, held that the preliminary objections by the Attorney General of the Federation, Bayelsa and Edo are dismissed as the court has the jurisdiction to entertain the suit. Citing Section 23(2)1 of the constitution, the court held that the dispute between the Federal Government and states must involve law or facts. The Apex Court declared the federal government’s economic Policy of Cashless and Naira Re-designing as an affront to the 1999 Constitution. Following the Supreme court ruled that the old N200, N500 and N1, 000 notes should remain legal tenders until December 31, 2023, some Point of Sale, PoS operators yesterday reduced cash withdrawal charges by as much as 90 percent even as they commenced disbursement to the public.
Meanwhile, financial sector stakeholders have commended the judgement of the Supreme Court describing it is as huge relief for the populace. The stakeholders include Founder and former Chairman, Stanbic IBTC, Mr. Atedo Peterside, MD/CEO, RTC Consult Limited, Mr. Opeyemi Agbaje, President, Association of Bank Customers Association of Nigeria, BCAN, Dr. Uju Ogubunka; President, Association of Mobile Money and Bank Agents in Nigeria, AMMBAN, Mr Olojo Victo. However, the Central Bank is now waiting for legal advice as it affects the entire Naira redesign policy. A senior officialsaid that the CBN would make its position on the matter known but that it was awaiting legal advice, ostensibly, from the Office of the Attorney-General of the Federation (AGF).
A PoS agent said she has been accepting the old Naira notes as deposit since it ceased being legal tender and now she has enough cash for her business. I now charge N300 for N10,000. Before the Supreme court judgment, the charge was N2,000 for N10,000 because getting the new notes and old N200 notes was difficult and I paid heavily to get them. “With the Supreme court judgment, our business will revive as many of my colleagues have closed down some of their outlets.” Another PoS agent said:” The Supreme Court judgment is a relief to us PoS operators I now charge N500 per N10,000 and have been accepting the old N500 and N1,000 notes because some traders have been depositing their old notes since court pronouncement for fear that it may be reversed but they have helped my business with the provision of cash which is now legal tender.”
Some market women and commercial transport levy collectors (Agberos) were also seen collecting the old naira notes from bus drivers who were unable to spend the old notes before it ceased being legal tender on February 10, 2023. A bus driver enroute Agbara to CMS, Mr Sunday Okoyomo, said: “I have N10,000 of the old notes in the denominations of N500 and N1,000. “Due to my busy schedule, I have been unable to deposit it in the bank. So I took N3,000 out of it hoping that the Supreme court judgment will favour me and other Nigerians who still had the old money with them. “And so it was. On hearing the reversal of the CBN policy by the Supreme court, I was very happy. “I just gave it to an Agberos on the way now and he accepted it. “This judgment will heal the wounds of many.”
Commenting on the development, the President, Association of Mobile Money and Bank Agents in Nigeria, AMMBAN, Mr Olojo Victor, said “yes it is a good omen. We believe that the Supreme Court has indeed proven to be the last hope for the common man. The policy wasn’t well thought out even though the intention was good but it further impoverished Nigerians. It made them jobless. It made life difficult and unbearable. I hope that the CBN will obey the Supreme Court order to the latter so that life can resume back to normal for Nigerians again. As an association, it is a welcomed development and we thank the Supreme court for not letting the hope of the common man down. We thank the Supreme Court for upholding justice and we hope that the CBN in future engagement will put in place proper mechanisms in carrying out its policies that affect Nigerians like this.” On his part, the President, Association of Bank Customers Association of Nigeria, BCAN, Dr. Uju Ogubunka welcomed the development saying: “We didn’t expect less. It is therefore a welcome development.”
The court held that President Muhammadu Buhari breached the Constitution of the Federation in the ways and manners he issued directives for the re-designing of the Naira by the Central Bank of Nigeria CBN. Justice Agim held that the President acted Ulta vires by his glaring failure to consult with the National Council of States, Federal Executive Council FEC and the National Economic Council NEC before directing the Central Bank of Nigeria to unlawfully introduce new Naira notes. He held that the unconstitutional use of powers by Buhari on Naira Re-designing has breached the fundermental rights of the Nigerian citizens in various ways. The apex court said such use of powers by President Buhari is not permitted under democracy and in a plural society like the Nigerian nation.
Among others, the court held that unlawful use of executive powers by the President inflicted unprecedented economic hardship on the citizens by denying them ownership of their monies and access to the money. The News Agency of Nigeria (NAN) reports that Kaduna, Kogi, Zamfara had filed the suit but Rivers, Kano, Niger, Jigawa, Nasarawa, Ondo, Ekiti, Katsina, Ogun, Cross River, Lagos, and Sokoto states were among the first batch to be joined as co-plaintiffs, while Edo and Bayelsa states joined the attorney-general of the federation (AGF) as defendants. Specifically, the states are seeking to restrain the federal government from giving effect to the deadline on the use of old N200, N500, and N1,000 notes. On Feb. 8, the supreme court restrained the CBN from giving effect to the deadline following an ex parte application brought by the three states.
The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.
The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.
He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.
“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”
Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”
The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.
With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.
Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.
The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.
He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.
Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.
The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.
The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%.
The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.
Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.
The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.
Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.
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