Calay News
Nigeria’s Supreme Court has declared the Central Bank of Nigeria’s (CBN) guidelines on the redesign of banknotes invalid. The decision was made following a lawsuit filed by the Nigerian Security Printing and Minting Company (NSPMC) challenging the CBN’s decision to award the contract for the printing of new banknotes to a foreign firm without following due process.
The CBN had previously issued guidelines that required all banks in Nigeria to return all old banknotes to the CBN by December 31, 2022, and begin using new ones by January 1, 2023. The NSPMC had argued that the guidelines were illegal and had asked the court to declare them null and void.
The Supreme Court ruled in favor of the NSPMC, declaring that the CBN’s guidelines on the redesign of banknotes were unconstitutional, null, and void. The court stated that the CBN had violated the NSPMC’s constitutional right to a fair hearing by awarding the contract for the printing of new banknotes to a foreign firm without giving the NSPMC the opportunity to bid for the contract.
The court ordered the CBN to return all old banknotes to the banks and extended the use of the old banknotes until December 31, 2023. The decision was made to avoid a cash shortage in the country, as many people still use cash for transactions.
The CBN has not yet released a statement regarding the Supreme Court’s decision. The bank had previously defended its decision to award the contract for the printing of new banknotes to a foreign firm, stating that the NSPMC did not have the capacity to print the required quantity of banknotes within the required timeframe.
The redesign of Nigeria’s banknotes had been a controversial issue in the country, with many criticizing the CBN’s decision to award the contract to a foreign firm. The NSPMC had argued that the redesign of banknotes should be done locally to promote the development of local industries and create jobs.
The Supreme Court’s ruling is a major victory for the NSPMC and a setback for the CBN’s efforts to redesign Nigeria’s banknotes. It remains to be seen what actions the CBN will take in response to the court’s decision.
