CBN has powers to grant loans, allow repayment via securitisation, court rules

The FHC Abuja presided over by Honourable Justice Omotosho, yesterday, dismissed the originating motion filed by Justus Edim against the President of Nigeria, Attorney General of the Federation, Central Bank of Nigeria and Debt Management Office Challenging the Securitisation of the loans granted to the FGN under the Ways & Means.

The court upheld the argument of  Mr Kofo Abdusalam Alada, the CBN Director of Legal Services that the CBN has powers to grant the loans and also to allow repayment by way of the securitisation of same pursuant to the provisions of Section 38 of the CBN Act.

The court also noted that the CBN was the only investor so no inflation would be caused by the securitisation and that the Plaintiffs did not place any credible evidence before the court to show breaches by the CBN and the Debt Management Office on the Securitisation.

Earlier the court had held that the plaintiffs who claimed to be acting for 220 million Nigerians had no locus standi to sue as they failed to demonstrate that they obtained the people’s mandate to represent them nor did the plaintiffs demonstrate that they had stronger interests than any other average Nigerian in securitisation of the Way & Means Loans. The court deprecated the practice of persons, who it described as “busybodies”, rushing to court to waste its time. No cost was awarded.