ν Wait for FG, CBN reaction to order
By Christy Anyanwu, Olakunle Olafioye and Agatha Emeadi
The confusion over the status of the old N500 and N1,000 notes as legal tender persisted last week following the rejection of both denominations by traders and transporters in Lagos State.
Traders, filling stations and customers in several parts of the state attributed their stance on both denominations of the naira on lack of official confirmation from the Central Bank of Nigeria following penultimate Friday’s ruling by the Supreme Court.
The apex court had on March 3, ruled that the old N200, N500 and N1, 000 notes would remain valid as legal tender in the country until December 31, this year. But more than a week after the apex court’s pronouncement, the Central Bank of Nigeria is yet to come up with an official reaction on the matter, thereby throwing Nigerians into confusion over the status of the old notes.
Traders and customers’ dilemma over the legal tender status of the old N500 and N1,000 notes was further worsened by the conflicting responses of banks to the apex court’s pronouncement.
Reports earlier in the week had claimed that some banks in Lagos had begun the payment of the old notes to customers while another claimed they were either still waiting for official confirmation from the CBN or waiting for the apex bank to re-issue the old N500 and N1,000 notes to the banks.
But unlike in Lagos where some banks were said to pay their customers with old notes of the two denominations following the latest pronouncement by the Supreme Court, reports from Abuja had indicated that banks in the Federal Capital Territory were yet to begin paying their customers with the old denominations of N500 and N1,000, claiming that they were yet to receive any directive from the CBN.
“We have been told not to collect the old N500 and N1,000 notes from customers because the CBN is yet to make any official confirmation on whether it will remain in use with the old N200 note or not. So, for now we are not collecting both notes from customers,” a petrol station attendant told Sunday Sun in Lagos on Wednesday.
While the situation makes life most difficult for people, transporters are not laughing either. On the way to Yaba from Cele-Express, a lady handed N1,000.00 old note to the conductor who quickly returned it in anger; the lady quickly responded, ‘but it has been announced that people should it collect for daily transactions”. But the conductor would only scream at her to pay her fare or get down. The lady was almost stranded as she explained that she had no other money on her except the N1,000.00 note that was with her. Another passenger however came to her rescue and paid on her behalf.
A trader, Abdullahi Gafar, said that he started collecting the old N500 and N1,000 notes the moment he heard about last Friday’s pronouncement, but had to stop after he realised that people would not take the same old notes from him.
“I collected the old notes from some customers who came to my shop last week because I heard that the court had said the old N500 and N1,000 notes would remain in circulation until the end of this year. But people refused to take the same notes from me so I stopped collecting it from people. I will start collecting once I know that I will be able to spend it. As I speak with you I still have N3,500 worth of the old N500 and N1,000 denominations in my possession,” he said.
Findings by Sunday Sun also showed that commercial bus operators, just like the traders in Lagos, are yet to comply with Supreme Court’s directive on the use of the old naira notes in most parts of the state.
Our reporters who moved round Lagos Mainland and Island on Wednesday reported that some bus conductors made it clear to their passengers that the old N500 and N1,000 were not acceptable before boarding their buses. 
A bus driver who simply identified himself as Lateef at Yaba area of the state said that he rejected the old notes from passengers who offered to pay their fare with it because fuel stations around the area were not collecting.
“I cannot collect it (old N500 and N1,000 notes) from passengers because petrol stations are not collecting from us. Naturally, petrol stations won’t reject any money from you except it is fake or substantial part of it has torn off. But in this case we cannot keep collecting what we are not sure of being able to spend afterwards,” he said.
Like Lateef, Ahmed Abdulbaki, a commercial tricycle rider, said that he does not collect the old N500 and N1,000 notes from passengers because those he expected to help mop the old denominations from circulation by collecting them from the people are not taking it from them. His words: “I don’t collect old notes. You can see I’m in the petrol station, they don’t accept old notes, so why should I accept old notes from passengers. Truly, Supreme Court has ordered that the money should be accepted as medium of exchange, but the president is not saying anything about it. Even the Central Bank is quiet on the issue. So, who am I to collect old notes? Where and how would I spend the money if I take it from people?”
Findings by Sunday Sun, however, showed that some business outlets in some parts of the state still accept the N500 and N1,000 notes.
Mrs Mary Inyàng, a caterer and dealer in confectioneries at Agege, said that she does not reject the two denominations of the naira. According to her, she started collecting the old naira notes the same day the nation’s apex court delivered its ruling on the matter, “Some ATM machines in this area still dispense the old notes, which means that the banks still regard it as legal tender. So, I have been collecting from my customers because I believe that the banks that feed their ATM machines with the old notes will collect it from me even if people are rejecting it,” she said.
A visit to Tejuosho Market in Lagos also showed that some business outlets and traders in the market accept the old notes from their customers while others reject the old notes.
At SPAR, the cashier revealed to one of our correspondents that the outlet had started collecting old notes from the customers.
Findings also showed that some fuel stations in the state are equally collecting the old notes from customers.
A source who spoke on the condition of anonymity at Mobil filling station situated at Adura Bus Stop along the Lagos-Abeokuta Expressway said that the outlet started collecting the old N500 and N1,000 notes from customers following Friday’s judgment by the apex court.
Most Nigerians who reacted to the issue are unanimous in their opinion that the confusion over the status of the old N500 and N1,000 notes would persist unless the CBN comes out boldly with a definite position on the matter.
They are of the opinion that the two conflicting reports reportedly credited to top officials of the apex court in the just concluded week escalated the confusion of the Supreme Court’s verdict issued in the penultimate Friday.
A report credited to the spokesperson of the CBN, Isa Abdulmumin penultimate Tuesday had claimed that CBN did not issue any fresh directive to commercial banks over latest judgment by the Supreme Court to the effect of the circulation of the old naira notes alongside the new ones until December 31.
Another report, however, claimed that an anonymous top official of the apex bank in an interview with another news outlet had urged Nigerians not to reject the old notes, saying that “both the old and new notes are legal tender, and banks are currently issuing them to customers. Nigerians should not reject any note, whether old or new.”