From Godwin Tsa, Abuja
Three states of the Federation, Kaduna, Kogi and Zamfara have approached the Supreme Court for an order suspending the demonetization policy of the Federal Government through the Central Bank of Nigeria (CBN) under the directive of President Muhammadu Buhari until it complies with the relevant provisions of the law.
As an interim relief pending the determination of their originating summons filed before the court, the states in their motion exparte are seeking an injunctive order restraining the defendants from full implementation of the policy.
In an originating summons marked SC/CV/162/2023 and dated February 3, 2023, the plaintiffs raised some constitutional questions for the determination by the court as it affects the demonisation policy of the Federal Government.
The originating summons brought pursuant to the provisions of section 14 (2) (b), 16, 232 (1) of the 1999 constitution, section 20 (1) and (3) of the CBN Act, 2014, and filed by counsel to the states, AbdulHakeem Mustapha, SAN, the applicants listed the Attorney General of the Federation as the sole respondent.
They equally filed an affidavit of urgency for an order abridging time within which the respondent may file and serve his counter-affidavit if any, on them.
In their originating summons, the states posed the following questions:
“Whether the demonetisation Policy of the Federation viz: the withdrawal of the old N1000, N500 and N200 Bank Notes being carried out by the Federal Government of Nigeria through the Central Bank of Nigeria, under the directive of the President of the Federal Republic of Nigeria is in compliance with the provision of the Constitution of the Federal Republic of Nigeria 1999 (as amended), Central Bank of Nigeria Act, 2007 and the extant laws on the subject?
“Whether the 3-month Notice given by the Federal Government of Nigeria through the Central Bank of Nigeria under the directive of the President of the Federal Republic of Nigeria, the expiration of which the old Bank Notes shall cease to be a legal tender, satisfies the provision of Section 20(3) of the Central Bank of Nigeria Act 2007 which specifies that “Reasonable Notice” be given by the Central Bank before it can call in its banknotes and after which same cease to be legal tender?
“Whether the demonetisation Policy of the Federation viz: the withdrawal of the old N1000, N500 and N200 Bank Notes being carried out by the Federal Government of Nigeria through the Central Bank of Nigeria, under the directive of the President of the Federal Republic of Nigeria, does not directly interfere with the powers and functions of the Plaintiffs and the welfare of the citizens of the Plaintiffs’ State?
As well as “Whether, in view of Section 20(3) of the Central Bank of Nigeria Act, the Federal Government of Nigeria through the Central Bank of Nigeria under the directive of the President of the Federal Republic of Nigeria have the powers to give a timeline for the redeeming any of its banknotes and the expiration of which timeline entitles the Bank to refuse to redeem same?
Upon the determination of the above questions in their favour, the Plaintiff claims the following reliefs against the federal government, viz:
“A declaration that the Demonetisation Policy of the Federation being currently carried out by the Central Bank of Nigeria under the directive of the President of the Federal Republic of Nigeria is not in compliance with the extant provisions of the Constitution of the Federal Republic of Nigeria 1999 (as amended), Central Bank of Nigeria Act, 2007 and extant laws on the subject.
“A declaration that the three-month Notice given by the Federal Government of Nigeria through the Central Bank of Nigeria under the directive of the President of the Federal Republic of Nigeria, the expiration of which will render the old Banknotes inadmissible as legal tender, is in gross violation of the provisions of Section 20(3) of the Central Bank of Nigeria Act 2007 which specifies that Reasonable Notice must be given before such a policy.
“A declaration that in view of the express provisions of Section 20(3) of the Central Bank of Nigeria Act 2007, the Federal Government of Nigeria through the Central Bank of Nigeria has no powers to issue a timeline for the acceptance and redeeming of banknotes issued by the Bank, except as limited by Section 22(1) of the CBN Act 2007, and the Central Bank shall at all times redeem its bank notes.
“An order of the Court directing the immediate suspension of the demonetisation policy of the Federal Government of Nigeria through the Central Bank of Nigeria under the directive of the President of the Federal Republic of Nigeria until it complies with the relevant provisions of the law.”
In their supporting affidavit to the originating summons, the plaintiffs averred that “despite the assurances of the Federal Government of Nigeria that the new naira notes would be in circulation by mid-December 2022, the new notes were not made available by the Government to Nigerians. I know as a fact that millions of Nigerians have to date not seen the newly redesigned naira notes let alone exchanged their old notes for the new notes.
“That since the announcement of the new naira note policy, there has been an acute shortage in the supply of the new naira notes. Citizens who have dutifully deposited their old naira notes have increasingly found it difficult and sometimes next to impossible to access new naira notes in order to go about with their daily activities.
“That whilst the introduction of the naira redesign policy was aimed, inter alia, at encouraging the adoption of the Federal Government’s cashless policy program, I know as a fact that not all transactions can be conveniently carried out through electronic means as several transactions still require cash in exchange for goods and services hence the need for the Federal Government to have sufficient cash available in circulation for the smooth running of the economy.
“That all Nigerians; including the Kaduna, Kogi and Zamfara State Governments are entitled to reasonable notice before the Federal Government can embark on the currency redesign policy so as not to occasion any form of hardship or loss on the nation.
“Contrary to the requirement for the naira redesign policy to be implemented within a reasonable time frame, the Federal Government of Nigeria has embarked on the policy within an unreasonable and unworkable time frame and this has adversely affected Nigerian citizens within Kaduna, Kogi and Zamfara State as well as their Governments, especially as the newly redesigned naira notes are simply not available for use by the people as well as the State Governments.
“Government activities and services requiring the use of cash have been adversely affected on account of the massive cash shortage thus making it difficult for the Government to effectively operate.
“People in the Plaintiff States (Kaduna, Kogi and Zamfara) have been deprived of their right to access their hard-earned money from their bank accounts having deposited their old naira notes with the banks. The people cannot access funds to purchase basic necessities such as food, transportation, health care, etc.
“As for the majority of the indigenes of the Plaintiffs’ states who reside in the rural areas, they have been unable to exchange or deposit their old naira notes as there are no banks in the rural areas where the majority of the population of the states actually reside. The majority of people in rural areas of the Plaintiffs’ states do not have bank accounts and have so far been unable to deposit their life savings which are still in the old naira notes.”
No date has been fixed for the hearing of the matter.