The Supreme Court has consolidated multiple cases challenging the Federal Government’s Naira swap policy, which was introduced through the Central Bank of Nigeria. The consolidated cases were brought by several states, including Kaduna, Kogi, Zamfara, Lagos, Cross River, Ogun, Ekiti, Ondo, Sokoto, Katsina, Rivers, Kano, Jigawa, and Nasarawa. These states seek a declaration that the Naira Swap policy, currently being carried out by the CBN under the directive of the President of Nigeria, is not in compliance with the country’s Constitution and laws on the subject.
The consolidated cases also challenge the Federal Government’s three-month notice, which rendered old banknotes inadmissible as legal tender, as being in gross violation of the provisions of Section 20(3) of the Central Bank of Nigeria Act 2007. Additionally, the states argue that the CBN does not have the power 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.
The plaintiffs have asked the Supreme Court to suspend the money swap policy until it complies with the relevant provisions of the law. They argue that the policy has caused an acute shortage of new naira notes, making it difficult for residents to conduct their daily businesses.
The Supreme Court rejected a joinder application filed by Abia State and consolidated all pending cases challenging the Naira swap policy. The issue in dispute revolves around Section 20(3) of the CBN Act. The court asked all states interested in the matter to await its decision in the suit that was originally filed by Kaduna, Kogi, and Zamfara states.
On February 8, the Supreme Court issued an interim order restraining the Federal Government from implementing its February 10 deadline for the use of the redesigned Naira notes as legal tenders. Despite the order, the CBN invalidated old N500 and N1000 banknotes, while President Buhari allowed the N200 note to remain legal tender until April 10 in a nationwide broadcast he made on February 16.
The Supreme Court consolidated the cases, rejecting further applications to join the legal proceedings. The court’s decision will be final, and if any party is dissatisfied, they can file a fresh suit.
This Post: Naira Crisis: Supreme Court Consolidates Cases Challenging Naira Swap Policy, Asks States To Await Its Decision was approved and published by Ojombo Media Editor and may not be republished elsewhere without prior written permission from the Editor.
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