Nigerian court extends use of old banknotes to December 31 amid cash shortage

Nigeria's Supreme Court on Friday ordered the central bank to extend until Dec. 31 the use of old banknotes, whose withdrawal from circulation has caused cash shortages, widespread hardship and anger. Sixteen states in Nigeria had brought the case to the court, arguing that Most Nigerians were stuck with old notes and needed more time beyond the Feb. 10 date when the bills ceased to be legal tender in a botched move to replace them with newer ones.

Nigeria's Supreme Court on Friday ordered the central bank to extend until Dec. 31 the use of old banknotes, whose withdrawal from circulation has caused cash shortages, widespread hardship and anger.

Sixteen states in Nigeria had brought the case to the court, arguing that Most Nigerians were stuck with old notes and needed more time beyond the Feb. 10 date when the bills ceased to be legal tender in a botched move to replace them with newer ones. Replacement bank notes have been in short supply, which has caused chaotic scenes at banks and adding to Nigerians' already boiling frustrations with high inflation and fuel shortages. It has also overwhelmed the digital banking network, as a flood of transactions shifted into cyberspace.

In a country where most people rely on cash for everything from taxi fares to buying food from markets, the shortages of naira bills has riled citizens, some of whom have attacked banks and burned cash-dispensing machines. "In line with the fact that no consultations were made ... and no adequate notice was given to Nigerians before the withdrawal of existing bank notes ... the directive to stop the circulation of the of the old notes is hereby declared invalid," Justice Emmanuel Agim said, delivering the unianimous verdict.