The ruling by the apex court of the land (the Supreme Court of Nigeria) on Friday, 03 March 2023 that all redesigned Naira notes and the old ones will remain legal tender and in circulation till December 31, 2023 climaxed the lingering titanic struggle between the political power brokers and managers of the Nigerian economy

For the outgoing President, Muhammadu Buhari, this is all familiar territory. He enacted similar policies in 1984 as a military Head of State.

And once more In 2022, under the guise of redeeming the economy and fighting vote buying. 

However, the 2022 naira redesign policy may be sound on economic fundamentals but it was a right thing being done at the wrong time with a very flawed implementation process.

“The rule of law upon which our democratic governance is founded becomes illusory if the President of the country or any authority or person refuses to obey the orders of courts,” ruled the Supreme Court head Justice Emmanuel Agim, in the case brought by three state governments – Kaduna, Kogi, and Zamfara – against the federal government at the Supreme Court, seeking an order invalidating the Central Bank of Nigeria’s (CBN) recent banknotes redesign. 

Expressing the Supreme Court’s unfamiliarity with “any law which empowers a bank to withhold a customer’s money and refuse…to give him/her”, the lead judgment extended the validity of the old naira notes until 31 December, ordering that they remain legal tender alongside the new notes, up until the newer deadline.

The Supreme Court also noted that; “The (CBN’s) directive on (cash) withdrawal limit is an infringement of people’s rights”.

And most have had to live with a frightening range of infringements since the banknotes swap policy came into effect. These have ranged from the economic (loss of earnings platforms across the economy’s informal sector), to  the emotional and even social impact (having to beg for cash from friends, family, neighbours and strangers to meet basic needs) 

The CBN’s response to the Supreme Court’s ruling, however, has been nothing short of disturbing.

Not only has its governor, Godwin Emefiele failed to offer a path towards implementing the apex court’s ruling, but there is no evidence whatsoever that the apex bank has acted to instruct deposit money banks to accept and dispense the old naira notes.

Mr. Emefiele continues to offer a signal lesson in disdain for the mores and laws of the land. Whether it was his earlier bid to be president, or his decision to be in contempt of the Supreme Court. 

Bank chief executives, on the other hand, have had a big role to play in the current cashless predicament. Having been accused by the CBN, who attribute the scarcity of cash to the unethical practices of private banks, rather than its failure to supply the system with enough new banknotes.

It is important that we understand the role of the industry regulator, even in a sector as important as financial services, is not analogous to that of a commander in the army.

The requirement to obey lawful orders should have our banks complying with the CBN’s decision, as soon as this was made. Along with Mr Godwin Emefiele, therefore, Nigerian banks’ chief executives have been responsible for inflicting pains on domestic economic actors that have continued to hurt the economy,

We cannot build a democracy where scofflaws run the financial services space.

One of the first steps for the President elect should surely be to dismiss as well as prosecute the current CBN governor for gross incompetence as well as contempt of the Supreme Court.

That would be a good place to start as any.