There were strong indications on Tuesday that the federal government was toying with the idea of extending the deadline for the use of N200, N500 and N1000 notes to bring an end to the cash crunch being suffered by Nigerians across the country.
Based on President Muhammadu Buhari’s nationwide broadcast, on Thursday, the deadline for the use of old N200 notes would be on April 10, while the N500 and N1000 notes would seize to be legal tender.
The President was, however, accused of violating a standing Supreme Court order that called for the use of all old notes as legal tender until the substantive case brought by the governors was heard on February 22.
Some governors led by Nasir el-Rufai of Kaduna state had immediately read out a counter broadcast to their states approving the continued use of the N200, N500 and N1000 naira notes in line with the Supreme Court order, paving the way for a potential constitutional crisis.
To avert a complete breakdown of law and order, therefore, the Minister of Justice and Attorney General of the Federation, Abubakar Malami, has been meeting with the governors to find an amicable solution to the crisis so that the case in the Supreme Court would be withdrawn.
A competent source close to one of the governors told ECONOMIC CONFIDENTIAL on Tuesday that the federal government was not only meeting with the governors but also considering extending the deadline and bringing back old N500 and N1000 notes into the system.
“el-Rufai and other governors involved in the dispute with the FG and CBN had a meeting with the Attorney General, Abubakar Malami, on an out-of-court settlement. The meeting which began last night (Monday) ended this morning (Tuesday),” the source said.
The source said the issue had been resolved in favour of further extension to the deadline for the use of old notes.
According to the source, an announcement might be made on the new developments in the next 24 hours or at the latest on Wednesday.
Meanwhile, another source close to AGF Malami confirmed the meeting to our correspondent, who contacted him on the phone.
He, however, declined to give the details of the meeting. (Economic Confidential)
