Nigeria’s top court blocked the central bank from ending the use of higher-denomination naira notes, ThisDay reported.
(Bloomberg) — Nigeria’s top court blocked the central bank from ending the use of higher-denomination naira notes, ThisDay reported.
The Supreme Court in Africa’s largest economy said the central bank should scrap plans to halt the use of 200- 500- and 1,000-naira notes on Feb. 10 and await the hearing of a case brought by three state governments challenging the policy, the Lagos-based newspaper reported.
The governors of Kaduna, Kogi and Zamfara states — all run by the nation’s ruling party — are suing the federal government, seeking the suspension of the central bank’s plan that has caused a cash crisis and disrupted transactions in Africa’s most—populous nation. The legal challenge is expected to be heard on Feb. 15, ThisDay said.
Nigeria’s demonetization policy has divided the ruling All Progressives Congress, with its presidential candidate, Bola Ahmed Tinubu, arguing that the policy may undermine the party’s chances in elections later this month. The three APC governors said in court that their “states are on the verge of anarchy,” as their residents can’t obtain new notes after depositing the old ones.
The International Monetary Fund on Wednesday urged the central bank to consider extending the deadline for the old notes to cease to be legal tender if the lack of access to new notes persists.
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