Supreme Court intervenes in cash crisis

In March 2023, Nigeria's Supreme Court ruled that the Central Bank of Nigeria (CBN) must extend the deadline for phasing out old naira notes, effectively overturning the bank's February 10 deadline. The court declared that old N200, N500, and N1,000 notes should remain legal tender until December 31, 2023. This decision came after several state governments, led by Kaduna, Kogi, and Zamfara states, filed suits challenging the CBN's currency redesign policy and its implementation timeline.

The crisis began in October 2022 when CBN Governor Godwin Emefiele announced a currency redesign policy, giving Nigerians until January 31, 2023 (later extended to February 10) to exchange old notes for new ones. However, the rollout was severely hampered by insufficient new notes in circulation and long queues at banks and ATMs. Many Nigerians found themselves unable to access cash for daily transactions, leading to widespread hardship, protests, and economic disruption across the country, particularly affecting small businesses and rural communities.