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Nigerian Governor Shuts Down Popular Supermarket For Rejecting Old Naira Notes Amid Cash Crunch

Nigerian Governor Shuts Down Popular Supermarket For Rejecting Old Naira Notes Amid Cash Crunch
February 12, 2023

He warned that the same fate would befall other business owners who refuse to collect old naira notes. 

Kano state government on Sunday shut down popular supermarket, Wellcare, over its refusal to accept old naira notes.

 

Baffa Babba Danagundi, Acting Chairman of the state Consumer Protection Council, said the supermarket was shut down shortly after Governor Abdullahi Ganduje gave the order.

 

According to Daily Trust, Danagundi said the closure followed the refusal of WellCare Supermarket to accept the old naira notes from customers contrary to the directive of the state government.

 

He warned that the same fate would befall other business owners who refuse to collect old naira notes. 

 

However, Wellcare Alliance Limited has apologised in a letter to the government, seeking an immediate intervention to re-open the supermarket.

 

Kano is one of the states challenging the Naira redesign policy of the Central Bank of Nigeria in court.

 

On Friday, SaharaReporters reported that the state was challenging the unilateral decision of the Nigerian government through the apex bank to recall old N200, N500 and N1,000 banknotes without recourse to the Federal Executive Council and National Economic Council.

 

Due to the policy, there is a scarcity of cash in the system, forcing many Nigerians to queue for long hours in banks and at ATM galleries to withdraw rationed cash. The policy is affecting businesses, with many business owners lamenting poor sales because of the paucity of cash in the system.

 

The suit filed by the Kano State Government on Thursday by Sunusi Musa (SAN), on behalf of the Attorney General of the state was marked SC/CS/200/2023.

 

The government is seeking a mandatory order reversing the recall of N200, N500 and N1,000 notes from circulation due to the policy.

 

It noted that the policy was affecting millions of Kano residents.

 

The state government is also asking the court to compel the Muhammadu Buhari-led Federal Government to reverse the naira redesign policy, which allegedly failed to comply with the 1999 Constitution (as amended).

 

It is seeking among other declarations: “A Declaration that the combined reading of the provisions of the section 148(2) of 1999 constitution and Part 1, and Paragraph 19 of the Third Schedule thereof, the President cannot unilaterally without recourse to the Federal Executive Council and National Economic Council respectively give approval to the Central Bank of Nigeria for the implementation of cash withdrawal limit pursuant to the demonetization economic policy of the Federal Government of Nigeria.”