The House of Representatives Adhoc Committee on the New Naira Notes has demanded the Central Bank of Nigeria (CBN) to comply with sections 20 (3), (4), and (5) of the CBN Act regarding the phaseout of old naira notes.
The committee rejected the 10-day extension for swapping the old N1,000, N500, and N200 notes. Section 20 of the CBN Act provides that the currency notes and coins issued by the bank shall be legal tender in Nigeria and can be called in if directed by the President after reasonable notice.
Falsifying, making, or counterfeiting banknotes is an offense punishable by imprisonment of at least five years. Refusing to accept the naira is also an offense and is punishable by a fine or six months imprisonment.
Lawyers have differing opinions on the issue. Theophilus Akanwa, a Lagos lawyer, feels CBN has complied with the section by giving reasonable notice. Abayomi Omoyinmi, a former member of the Ogun State Judiciary Service Commission, believes CBN may have complied with the Act in part but failed to comply with the law on the extension time. Festus Ogun, another Lagos lawyer, thinks the CBN is under compulsion to accept old notes even after the validity deadline.
According to Ogun, the CBN does not have the power to give a deadline on the surrendering of old currencies and has a mandatory duty to redeem old notes when presented. He argues that people, especially in rural areas, may not have access to banks and the new legal tender, and therefore rendering their money useless due to a deadline is not fair.
