Nigeria’s Supreme Court has temporarily suspended Friday’s deadline to stop using old banknotes, which had caused a cash crisis in the country.
Banks have not been releasing enough of the new naira notes, leading to desperate and chaotic scenes as people tried to get their hands on them.
There were fights at ATMs, protests and mob attacks on commercial banks.
The chaos led to concern that it could affect this month’s elections, as many Nigerians do not have bank accounts.
The head of the election commission said some election service providers will need to be paid in cash, and that could prove to be difficult.
A spokesperson for the presidential campaign of Bola Tinubu, running for the ruling APC, welcomed the Supreme Court ruling. “Our people have suffered greatly due to the incompetence of officials,” said Ajuri Ngelale.
Mr Ngelale added that the purpose behind the policy was “laudable” but that the lack of cash caused “rightful frustration” resulting in “civil unrest”.
Mr Tinubu had alleged that powerful forces were intentionally making cash scarce in order to thwart his chances of victory.
Atiku Abubakar of the main opposition PDP backed the policy in principle but said it had been implemented poorly.
While Peter Obi of the Labour Party urged Nigerians to be patient, saying the reforms would have long-term benefits.
Some observers have pointed out that the lack of access to cash might make it more difficult for candidates to bribe voters – which is a common practice in the country.
There was relief in Lagos at the Supreme Court’s decision.
“It’s the best move. It’ll make things easier for us. They need to release all the old and new naira notes, because the pressure is too much,” 39-year-old Saka Akin told the BBC.
However, while the ruling removes the pressure of Friday’s deadline, it may not immediately help those struggling to get their hands on cash.
Paul Alaje, an economist at SPM Professionals, told the BBC that the decision would only benefit wealthier people: “[It is] good news for the elite who can now spend the old notes they’ve been hoarding.”
Mr Alaje added that only 20% of the old notes remain in circulation, while many people in rural areas will not even be aware of the judgement so will continue avoiding the old notes.
This was backed up by Lagos resident Rosemary, 22: “It’s annoying. We’ve not even seen the new notes. I have 7,000 naira on me now,” she said. “What do I do if people still don’t want collect it from me? We should just keep using the old ones.”
Source: BBC
