Amid Chaos, The Supreme Court of Nigeria has suspended the old-for-new currency swap deadline, as the International Monetary Fund (IMF) warned of threats to trade and payments.
The Supreme Court of Nigeria has stopped the government from implementing a Friday deadline for citizens to exchange old banknotes for new ones.
The International Monetary Fund (IMF) warned of threats to trade and payments.
Nigerians were supposed to turn in old 1,000, 500, and 200 naira banknotes (worth $2.17, $1.09, and $0.43, respectively) by Friday.
As part of a central bank initiative to reduce cash in circulation and supervise double-digit inflation.
The plan has sparked debate, with some claiming that there are not yet enough new notes available.
Thereby resulting in violent confrontations at banks and severe cash shortages.
Numerous politicians have opposed the deadline set before the February 25 elections for a new president and lawmaker.
Since campaigns are mostly sponsored by hard-to-trace cash.
According to Supreme Court Judge John Inyang Okoro, the decision to suspend the deadline was consensual.
Pending a legal challenge from three states who opined that the note swap plan was causing difficulty before the elections.
The court is scheduled to hear the states’ appeal on February 15.
Earlier on Wednesday, the IMF’s resident representative in Nigeria advised the Central Bank of Nigeria to consider extending the deadline.
This is due to the disruptions caused by a lack of new notes in a country where many people lack bank accounts.
Another justification for the currency swap is that it will reduce fraud, since the security features on the new notes will make them more difficult to counterfeit.
The bank eventually hopes to transition to a cashless economy.
According to the bank, approximately 1.3 trillion naira ($2.8 billion) in old notes have been deposited since the announcement in October.
Some ruling party officials have publicly accused the central bank of a narrative arc to turn voters against Bola Tinubu, the party’s presidential candidate.
Tinubu faces 17 other candidates, but three stand out as top candidates: Atiku Abubakar of the People Democratic Party, Peter Obi of the Labour Party, and Rabiu Kwankwaso of the New Nigeria People’s Party.
President Muhammadu Buhari is not running because he will have served his constitutionally mandated two terms in May.
Inflation and a faltering economy are likely to be major issues for voters, many of whom believe life is more difficult now than when Buhari took office in 2015.
