Again, Supreme Court bars FG, CBN from implementing old Naira order, as confusion lingers

Again, the country’s highest judicial body, the Supreme Court has restrained the Federal Government an fits agency, the Central Bank of Nigeria (CBN) from implementing the Old Naira termination order, by granting the injunction sought by the three state governors of Zamfara, Kogi and Kaduna challenging the decision to scrap the banknotes following the expiration of a February 10 deadline set by the regulatory bank to that effect.

The Supreme Court while ruling on the matter fixed for hearing Wednesday, in Abuja, however, adjourned till March 3 on the substantive suit challenging the Naira redesign policy of the Federal Government.

The Court had order5ed the halting of the deadline implementation in its February 8 and February 15 rulings, but the federal Government had moved ahead to scrap the old notes, just as President Muhammadu Buhari, had, last Thursday, during a nationwide broadcast, ordered the reintroduction of only the old N200 nots to co-exist with the new one till april 10, this year, effectively ruling out the re-emergence of the other N500 and N1000 notes affected by the ban.

A seven-member panel led by Justice John Okoro, halted the CBN action in a ruling in an exparte application brought by three state governors who had specifically applied for an order of Interim Injunction restraining “the federal government through the Central Bank of Nigeria (CBN) or the commercial banks from suspending or determining or ending on February 10, the timeframe with which the now older version of the 200, 500 and 1,000 denomination of the naira may no longer be legal tender pending the hearing and determination of their motion on notice for interlocutory injunction”.

Delivering ruling in that motion, Okoro, held that after a careful consideration of the motion exparte this application is granted as prayed.

Moving the application on Wednesday, counsel to the applicants, Mr A. I. Mustapha, SAN, urged the apex court to grant the application in the interest of justice and the well-being of Nigeria.

He stated that the policy of the government has led to an “excruciating situation that is almost leading to anarchy in the land “.

Ruling, Wednesday, February 22 in Abuja, on the resumed hearing in the suit filed on February 3 by the aggrieved state governors challenging the decision by the Federal Government, through the Central Bank of Nigeria (CBN) to scrap the old Naira banknotes, as part of the Naira redesign, following the expiration of the February 10 deadline for their termination as legal tenders in the country, the apex court moved further hearing to March 3.

The Presidential and National Assembly elections are expected to come up this Saturday, February 25, across the country.

On the substantive suit challenging the naira redesign and cashless policy, Justice Inyang Okoro, who led the seven-member panel of justices, fixed March 3 for further hearing after taking arguments from parties involved in the suits.

So far, a total 16 states have filed the suit are against the Federal Government over the cashless policy, with all the plaintiffs in their respective motions pitched their tents with the three aggrieved states namely Kaduna, Kogi and Zamfara that initially ignited the legal battle.

The 16 states include: Kaduna, Kogi, Zamfara, Ondo, Ekiti, Katsina, Ogun, Cross River, Lagos, Sokoto, Rivers, Kano, Nasarawa, Abia, Jigawa and Niger. This is just as Edo and Bayelsa states opted to back the Federal Government.

However, Edo and Bayelsa counsel had told the panel that they were in support of the cashless policy regime and sought to be joined as respondents.

It would be recalled that the Supreme Court of Nigeria had, last Wednesday, adjourned to Wednesday, February 22 for consolidated hearing of the suit filed by the three governors challenging the Naira redesign policy of the Federal Government, as contained in the CBN cashless policy framework.

This is further as the Supreme Court insisted that its order restraining the Federal Government from further implementing the Naira swap policy or setting a deadline of February 10 for discontinuation of the old notes through the Central Bank of Nigeria (CBN), still subsists.

Ruling in the suit, a seven-man panel of Justices led by Justice John Okoro, adjourned the matter after hearing arguments from both counsels, as well as ordering the plaintiffs to amend their originating process to reflect fresh co-plaintiffs, who had recently been joined to the suit.

At the hearing last Wednesday, seven state governments of Sokoto, Ondo, Lagos, Katsina, Cross River, Ogun and Ekiti through their Attorney Generals applied to be joined the list of plaintiffs, as two others states; Bayelsa and Edo joined as defendants.

Also ruling, penultimate Wednesday, February 8, the Supreme Court in the suit filed by the three state governors, ordered the Federal Government to halt the planned implementation by the Central Bank of Nigeria (CBN) of a February 10 deadline for cessation of the old Naira as legal tender in the country, pending final determination of the subsisting suit in the court.

The plaintiffs (three state governors) had in a motion ex-parte filed on February 3, prayed the court to halt the naira redesign policy of the Central Bank of Nigeria (CBN).

The Supreme Court in a unanimous ruling on February 8, granted an interim injunction restraining the Federal Government, the CBN and commercial banks from implementing the February 10, deadline for the old 200, 500 and 1000 Naira notes to stop being legal tender.

“After a careful consideration of this ex-parte application, and the grounds in support of same, this court finds that there is real urgency for this court to intervene by the grant of this application.

“Accordingly, this application is hereby granted as prayed.

“That is to say, an order of interim injunction restraining the Federal Government of Nigeria, either by itself or acting through the Central Bank of Nigeria (CBN) and/or the commercial banks, its agents; agencies, corporations, ministries, parastatals, organizations or through any person or persons (natural and artificial) howsoever, from suspending or determining or ending on the 10th of February 2023 the timeframe within which the now older versions of the 200, 500 and 1000 denominations of the naira may no longer be legal tender, pending the hearing and determination of the plaintiffs/applicants’ motion on notice for interlocutory injunction,” the Supreme Court has ruled, last Wednesday.

The Supreme Court then fixed February 15 to hear applications by the Federal Government and other parties.

Also at the Wednesday hear, the Attorneys General of Katsina Lagos, Cross River, Ondo, Ogun, Ekiti and Sokoto states were joined as co-plaintiffs to the earlier suit filed by Kaduna, Kogi and Zamfara states.

The court also joined the Attorneys General of Edo and Bayelsa states as co-respondents. Both states elected to side with the Attorney General of the Federation (AGF) originally listed as the sole respondent.

This is also as the court ordered that the suits filed by separately by Nasarawa, Rivers and Kano states on the same issue be consolidated with the one filed by Kaduna, Kogi and Zamfara states, while the Lagos led by its Attorney General, Moyosore Onigbanjo, and Bayelsa led by Damian Dodo have also resorted to filing an application to join the suit.

The Supreme Court ordered parties to file all necessary documents before the hearing set for next Wednesday, February 22.

The CBN had initially set a January 31, 2022 deadline for the termination of use of the old Naira notes since the December 2022 introduction of the redesigned notes, however, following appeals by the general public the Federal Government directed the regulatory bank to extend the deadline to February, February 10.

The bank, had Monday, last week, declared the old Naira notes as non-legal tender, as commercial banks and public and private offices and businesses now reject its acceptance.

The Naira scarcity is also compounded by refusal of commercial banks to accept the old notes from depositors, even as the currencies were subject of rejection in the open market across the country, including public and private offices.

President’s directive in a nationwide broadcast, last Thursday, has been countered by some state governors, including those of Kano, Kaduna who in separate statewide broadcast to their residents directed them to continue using the old naira notes.

This is also as state governors of Lagos and Ogun, Mr Babajide Sanwo-Olu and Dao Abiodun, respectively, have issued statements criminalizing rejection of the old naira notes in their domains. Furthermore, their counterpart in Rivers State, Nyesom Wike has condemned the directive of the Federal Government and CBN, though mute on compliance with the order.

The dissenting state governors have cited the position of the Supreme court as reason their counter-directive to residents of their states.

While the Ogun Governor, Prince Dapo Abiodun, Friday, threatened to revoke the Certificate of Occupancy (CofO) of any business outlet operating in the state found to be rejecting the old Naira notes, his Kano counterpart, Abdullahi Ganduje, also vowed to destroy any commercial bank operating in the state which refuses to accept deposits from customers in the old currencies.

The Kano Governor, who disclosed this, Friday, during his inspection of palliatives meant for distribution to the citizens to cushion the effects of the hardship caused by the cashless policy, said premises of the destroyed banks would consequently be converted to schools.

On his part, the Lagos State Governor, Babajide Sanwo-Olu equally told residents he will criminalise rejection of the old notes, maintaining it is in line with the position of the Supreme Court which had earlier asked the Federal Government to stay action on the old naira notes pending determination of the suit brought by the state governors.

Kaduna Governor Nasir el-Rufai, in a statewide address to residents, Thursday, called on residents to defy the President Buhari and CBN order and continue transacting their businesses with the old Naira notes,

Violent protests have already been reported across parts of the country over the naira scarcity arising from the Naira redesign policy, as residents of Ibadan, in Oyo State, last Thursday, took to the streets in protest against the hardship triggered by the Naira notes swap and fuel price hike, as angry protesters attacked commercial banks destroying their property over the Naira scarcity and rejection of deposits in old notes.

The Ibadan protests follow another one in Udu, near Warri, in Delta State over the same matter of Naira scarcity, as well as that in Benin City, Edo State.

Similar unrests have been reported in parts of Ogun, Katsina, and Kano states.