Court Stops CBN, Buhari, others from interfering with Naira redesign termination date

Newsflash Nigeria StaffFebruary 6, 2023

3 minutes read

Justice Eneojo Eneche of the Federal Capital Territory (FCT) High Court, has stopped the Central Bank of Nigeria (CBN), President Muhammadu Buhari, and 27 commercial banks from suspending or interfering with the currency redesign terminal date of February 10 or issuing any directive contrary to the said date.

In a motion by five political parties namely Action Alliance (AA), Action Peoples Party (APP), Allied Peoples Movement (APM), and National Rescue Movement (NRM), the court also granted an order directing the Chief Executive Officers (CEOs) of the banks, to show cause why they should not be arrested and prosecuted for the financial sabotage of the country, by illegally hoarding and not disbursing the new N200, N500, and N1000 bank notes, despite the supply of such notes by the central bank.

Buhari, last year, approved the redesign of the banknotes. The move has, however, created hardship among Nigerians who have struggled to lay hands on the new notes as the February 10th deadline for the currency swap inches closer.

In the wake of the naira swap crisis, the CBN maintained it would not extend the deadline.

The recent CBN policy has been met with polarising views as some have expressed support for the apex bank’s decision, while many others have kicked against it as insensitive to the average Nigerian.

On the one hand, some critics of the directive have accused the Central Bank of deceiving Buhari.

For instance, a former National Chairman of the All Progressives Congress (APC), Adams Oshiomhole, faulted the policy, describing it as senseless and a plot by the apex bank to scuttle the general elections.

According to him, the CBN sold an anti-corruption motive to the President which made him approve the policy.

On the other hand, in spite of the policy presented as targeted at corrupt politicians and hoarders of illicit funds, some others like the presidential candidates of the Peoples Democratic Party (PDP), Atiku Abubakar; and Labour Party, Peter Obi, have shown support for the CBN.

Newsflash Nigeria reports that this order of the Court has rendered futile all behind-the-scene efforts especially by Governors of some States to force the hand of the President to reverse the Naira swap policy or at least extend its deadline.

Governors alleged to be behind the moves to stop this policy include the Governors of Kaduna, Kogi, Zamfara, Ondo, Rivers, Imo, Benue, and Kano States.

The order also ties the hands of bank CEOs and their staff who have been alleged to be hoarding the new banknotes and trading with them, thereby causing untold hardship to ordinary citizens.

Following the order, a cross-section of lawyers, Civil Society Organization and ethnic youth groups, have hailed the latest court order, saying it was best for the country and would afford the stakeholders opportunity to now concentrate on how to ameliorate the hardship occasioned by the policy.

Groups such as Arewa Consultative Youth Movement, Ohanaeze Youth Movement, and Oduduwa Youth Assembly have hailed the FCT High Court order.

Arewa Youths said that looters of the commonwealth of the people have lost out while Ohanaeze Youths insisted that vote buyers and election riggers have been relegated just as Oduduwa Youth held the view that kickbacks will be very difficult now, corruption greatly limited and the chance for money laundering made slimmer.

Furthermore, a continental civil society organization, the African Centre for Justice and Human Rights (ACJHR) said the order of the court was the first step in sanitising the country’s financial market and help in conducting very credible polls as politicians will find it extremely difficult if not impossible to have access to cash to compromise the 2023 elections.

In the 27 grounds by the applicants, they made out a case showing that politicians who ostensibly are in possession of illicit funds were the ones who want the policies suspended.