Following the judgment of the Supreme Court yesterday ordering that the old naira notes must remain in circulation till December 31, 2023, the ruling All Progressives Congress (APC) has called on Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele and the Attorney General of the Federation (AGF), Mr. Abubakar Malami, to resign their positions over their ignoble role in the matter.
Meanwhile, the CBN has kept mum over the judgment, though there were indications last night in Abuja that it may have set up a team to study the ruling.
A source familiar with the matter however said that Emefiele would reach the President on the next like of action.
“There is no indication that the CBN will react to the judgment until there are pronouncements from one of the spokespersons of the President or from the office of the AGF,” the source revealed.
Many financial experts, who spoke with The Guardian on the development, also expressed satisfaction with the ruling, saying complying with it would ease the sufferings of the banking public and boost the economy. However, some expressed fears that the CBN may not re-circulate the old notes, hence the sufferings of Nigerians would linger a bit more.
The Supreme Court in its ruling ordered the CBN to allow both the old naira notes and the new ones to circulate side by side till the end of this year.
It also voided and set aside all directives issued by President Muhammadu Buhari in respect of the naira re-designing and circulation policy on grounds of illegalities and abuse of executive powers.
The court took a swipe at the President for disobeying its interim order of February 8 to the effect that the old naira should be allowed to be in circulation.
Justice Emmanuel Akomaye Agim held that the President exhibited and took the disobedience to the highest peak with his broadcast of February 16 in which he allowed only N200 notes alone to be re-circulated.
In the judgment, the court held that the President acted ultra vires by his glaring failure to consult with the National Council of States, Federal Executive Council (FEC) and the National Economic Council (NEC) before directing the CBN to unlawfully introduce the new naira notes.
Justice Agim held that the unconstitutional use of power by President Buhari on the naira re-design policy has breached the fundamental rights of Nigerians in various ways. The apex court said such use of powers by the President is not permitted under democracy and in a plural society like Nigeria.
The Supreme Court, among others, held that unlawful use of executive powers by the President inflicted unprecedented economic hardship on the citizens by denying them ownership of their monies and access to the money.
In a unanimous judgment, the Supreme also faulted the three-month notice given by the Federal Government as being unlawful and insufficient for the policy. It also held as unconstitutional and unlawful the policy of withdrawal limits introduced by the CBN.
The court went ahead to hold that the Federal Government placed the cart before the horse in its implementation of the policy on cashless economy.
It said instead of consulting with the other federating units before the implementation of the cashless policy, it rather implemented it before commencement of consultation.
On the preliminary objection by the defendants that the Supreme Court has no jurisdiction to hear the matter, the court held that the matter is between the Federal Government and federating units, which gives it the jurisdiction.
It could be recalled that 16 states of the federation had instituted the suit to challenge the legality or otherwise of the naira re-design policy and its implementation.
Kaduna, Kogi and Zamfara states spearheaded the suit but Katsina, Lagos, Cross River, Ogun, Ekiti, Ondo, Sokoto, Rivers, Kano, Niger, Jigawa, Nasarawa, Plateau and Abia states were joined as plaintiffs .
Upon an application by Bayelsa and Edo States, the court, on February 15, joined the two states as co-defendants with the original sole defendant, the Attorney General of the Federation (AGF).
The 16 states had prayed the Supreme Court to void and set aside the policy on the ground that it was inflicting hardships on innocent Nigerians.
They accused President Buhari of usurping the function of the CBN in the introduction and implementation of the policy, asking that the directive issued by Buhari be voided.
On its part, the Federal Government challenged the jurisdiction of the Supreme Court on the grounds that the CBN was not joined as a party and that the dispute on the policy ought to be directed at the CBN so that the suit could be referred to the Federal High Court.
Reacting to the judgment of the Supreme Court on the matter, APC’s National Vice Chairman North West, Dr. Salihu Lukman, in a statement in Abuja, called on the CBN Governor, Emefiele and the AGF, Malami, to resign their positions over what he described as their ignoble role in the cash crunch saga.
The party remarked that it was unfortunate that President Buhari was misled into such acts of illegality and abuse of executive powers as pronounced by the Supreme Court.
The party noted: “We, and indeed all Nigerians, are grateful to the Supreme Court Justices led by Justice Akomaye for this landmark judicial intervention. Given the injurious nature of the consequences of the cashless policy of the Federal Government as was implemented thus far, and the damage of the Supreme Court ruling to the profile of President Muhammadu Buhari, the Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, and Attorney General of the Federation, Mr. Abubakar Malami, must take personal responsibility for this act of illegality by the Federal Government.
“In advanced democracies, public officers who commit such acts of illegality voluntarily resign from their appointments
“Therefore, if indeed the cashless policy of the Federal Government was supposedly designed to conform with extant legal provisions of the Nigerian Federation, now that it turned out in the direct opposite, both the CBN Governor, Mr. Emefiele, and the Attorney General of the Federation, Mr. Malami, should accept the limitations of both their knowledge of the law and commitment to democracy by resigning from their respective offices forthwith.
“Rule of law is fundamental to democracy and individuals who flagrantly violate the laws or promote acts that breach the constitution of the Federal Republic of Nigeria must not be tolerated,” the party said.
The party called on Nigerians to take note of the fact that the crusade against the Federal Government cashless policy was led by the APC not minding the attempt to sensationally politicise it to the benefit of opposition political parties and their candidates in this election season.
It added: “It is gratifying that Nigerians resisted the antics of subversive politicians who wanted to use such crude methods, including inflicting untold hardship and pains on Nigerians to provoke citizens into voting against the APC during the February 25 Presidential and National Assembly elections.
“We commend and salute Nigerians for their faith in our party, APC, and determination to support our party and our candidates during the 2023 elections. We are indeed confident that Nigerians across all the 36 states of the federation will reaffirm this confidence during the Governorship and States’ Houses of Assembly election on Saturday, March 11, 2023.
“It is a patriotic duty to challenge the policy of government, which unfortunately plunged Nigerians into hardship and unimaginable shock, notwithstanding partisan affiliations. By so doing, our leaders in APC led by Mallam Nasir, Alh. Yahaya Bello and Alh. Matawalle have once again demonstrated superior commitment to democracy.”
Kaduna State Governor, El-Rufai, who was in court alongside his Kogi and Zamfara state counterparts, described the judgment as victory for the people.
He explained that they filed the suit because they sensed that the policy was targeted at their party, the APC.
El-Rufai stated that although the President was from the APC, they approached the court to seek redress when efforts to resolve the issue behind closed doors as party men failed.
He urged Nigerians to go ahead with using the old naira notes in line with the Supreme Court’s order.
The Speaker of the House of Representatives, Gbajabiamila, on his part, noted that the apex court has once again proved that it is the highest court of justice in the land.
In a statement yesterday, the speaker said: “It has always been the position of the House of Representatives that despite the noble intentions behind the currency swap policy, the design and implementation of the policy have been fatally flawed and contradictory to the ends of law and public policy.
“The decision of the Supreme Court suspending the currency swap policy introduced by the Central Bank of Nigeria (CBN) and extending the implementation deadline to December 31, 2023, validates the position of the House in its entirety.”
Describing the implementation of the policy as “remarkably haphazard,” Gbajabiamila stated that it fell way short of international standards.
“It deviated from the prior practice of the CBN without providing any benefits to the Nigerian people or the economy of Nigeria, both of which have suffered significant harm as a result,” he added.
He said the CBN “must respect the apex court’s judgment and act quickly to give it full effect,” stressing that “this is necessary to reverse some of the damage done to our economy and prevent the continued suffering of the Nigerian people.”
Gbajabiamila commended the governors of Kaduna, Kogi and Zamfara, as well as their other colleagues for approaching the apex court to make a decision on the matter, describing their action as “the right thing to do.”
“It showed their collective adherence to the rule of law and their determination to take bold actions that serve the best interests of the Nigerian people.
“While we anticipate action by the Central Bank, there is still a need to examine and understand how this policy intervention turned out in the way it did.
“The House of Representatives will exercise its authority to review the actions and inactions, the failures of law and procedure that set the conditions for this profound failure of public policy. This is necessary to ensure we take the right legislative actions to prevent future reoccurrence,” he noted.
A human rights lawyer and activist, Jiti Ogunye, also applauded the judgment, noting that it aligns with the judicial precedents laid down by the apex court itself.
The lawyer stated that when a matter is submitted at the court for adjudication, even though an order, a restraining order is not made yet, parties are expected to act in deference to the court and its proceedings.
“It then becomes worse when a restraining order has been made and any of the parties said the order will not hold. That is what the President did. It was defiant, it was disrespectful, it was shameful,” he said.
He therefore expressed gladness with the verdict, noting that it has further buttressed that the court is always alive to its responsibilities.
“So, I am glad that Supreme Court has intervened. I am glad that they are doing this regardless of the fact that the President is on his way out of power, so that nobody will do the mistake of being so high or tall. Indeed, the President is a very tall man; the law is taller than him. This is a very beautiful day for democracy because constitutionalism and the rule of law have been entrenched,” he said.
An insurance broker, Bonaventure Ibe, has also advised the Federal Government to obey the judgment for the sake of the economy.
The Director of Institute of Fiscal Studies (IFS), Godwin Ighedosa, also called on the apex bank to respect the ruling of the court, especially as it concerns the currency swap policy.
“For me, the December 31, 2023, deadline as last date for the legality of the old notes will help the economy to rebound and sufferings of the ordinary Nigerian will be reduced,” he said.
A Professor of Capital Market at the Nasarawa State University, Keffi, Uche Uwaleke, also advised the CBN to comply with the ruling since it has come from the final court in the land.
“Doing so will help revive economic activities and reduce the current difficulties being experienced by Nigerians on account of the policy,” he added.
He, however, noted that it was important to recognise that the CBN has recorded some achievements in terms of the objectives it set out to achieve.
He emphasised that the reduction of the huge cash circulating outside the commercial banks, the surge in electronic transactions and increase in financial inclusion were part of the achievements recorded thus far.
“The time frame till December 31, 2023, provides an opportunity for the CBN to re-assess the policy and improve on its implementation without causing distortions to the economy,” he noted.
Despite the feeling of relief among Nigerians, an economist and financial expert, Dr. Chiwuike Ubah, said he does not see the Federal Government returning the recovered old naira notes of N1000 and N500 into circulation, saying that the much that could happen with the order of the Supreme Court was to allow those still in possession of the affected naira notes to use them.
Ubah stated that he does not see the development reducing the current pressure on the economy, adding that the order of the Supreme Court may not be implemented until May this year when a new government assumes office.
“What the Supreme Court did was to redress the abuse of the law by the CBN. This is because the law says that the old and new notes should run concurrently and that the old notes remain a legal tender each time it was returned to the bank. So, CBN’s earlier role was in contravention of that rule. But beyond that, I don’t see the Federal Government obeying this law. They won’t say they won’t do it but the CBN will not release the old notes into the system. They will technically keep the old notes and gradually release the new ones. This is because even after the President ordered the release of the old N200 notes into the economy, the CBN still did not flood the banks with the old notes. What they released was very small and still put that pressure on the people. Even the ones they brought out were old dirty notes. So I don’t see it happening until May this year when a new government will assume office,” Ubah said.
A public sector economist, Dr. Desmond Echeta, has also stated that the Supreme Court judgment was indicative that individuals were stronger than institutions in Nigeria.
Echeta, who is a senior lecturer at the University of Agriculture and Environmental Sciences, Umuagwo, Imo State, said: “You know Nigeria doesn’t have institutions. Individuals are stronger than institutions in Nigeria. The fact is that the CBN Act empowers the CBN to deal with monetary policies; the Supreme Court cannot constitute itself into performing functions of the CBN. That is the problem we are having. Remember that the CBN was not joined in that suit.
“The implication is that individuals will have to carry out their businesses the way they want to carry them out because they don’t have confidence in the system. They don’t have confidence in the judiciary.
