Supreme Court overrules CBN on old Naira notes, adjourns further hearing to Feb. 22

Supreme Court of Nigeria, Wednesday, adjourned to Wednesday, February 22 for consolidated hearing of the suit filed by governors Kaduna, Kogi and Zamfara states, challenging the Naira redesign policy of the Federal Government.

This is also as the Supreme Court maintained that its order restraining the Federal Government from further implementation of the Naira swap policy or setting a deadline of February 10 for discarding of the old notes by 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 on 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.

It would be recalled that last Wednesday, February 8, the Supreme Court while ruling on the suit filed by the three state governors against the Federal Government’s Naira swap policy, 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.

However, despite ruling that the Federal Government, CBN and commercial banks must not continue with the deadline pending the determination of a notice in respect of the matter, the regulatory bank after the February 10 deadline it set, proceeded to declare the old Naira notes as illegal tender, a move which then forced more state governors to head to court.

At the hearing of the suit, Wednesday, counsel to the Kaduna, Kogi and Zamfara states, Abdulhakeem Mustapha (SAN) drew the attention of the court that the Federal Government and its agencies have failed to comply with the order halting the implementation of the Naira swap policy and have allegedly directed the rejection of the old notes.

Mustapha said the plaintiff filed a notice of non-compliance with the order of the court order made on February 8, as he demanded that the court take action against the respondent to protect the dignity of the court.

“That order has been flouted by the government. We are talking of executive lawlessness here. We have filed an affidavit to that effect…We want the court to renew the order for parties to be properly guided.”

Responding, Justice Okoro asked Mustapha to file a proper application to put forward his complaints and to enable the respondent respond appropriately, as he stated that there was no need for a renewal of the court’s order.

According to Justice Okoro, since the order made by the court on February 8 was made pending the determination of the motion for injunctions filed by the plaintiff, it still subsists since the motion was not yet heard.

Justice Okoro told counsel to Mr Abubakar Malami SAN, the Attorney General of the Federal (AGF), Kanu Agabi SAN to advise his client to ensure the availability of currency for the people.

“Tell your client to let people have money. If they go to the ATM and the plaintiffs will come and withdraw the case. Make money available to the poor masses.

“You should know that a hungry man is an angry man. I say no more,” he said.

Responding, Agabi said Nigerians were only blaming the government for their poverty.

“Many people don’t have money. They blame it on the Fed Govt and the AGF. I don’t have money too.

“Things have been bad for long. It is not today that the problems started,” Agabi said.

Justice Okoro, therefore, adjourned to Wednesday 22nd of February for hearing following consensus by parties.

Governors Nasir El-Rufai and Yahaya Bello of Kaduna and Kogi states were in court to witness proceedings.

Speaking in an interview, counsel to the plaintiff, Albdulhakeem Mustapha SAN and that of the defendants, Kanu Agabi San, expressed confidence for the amicable resolution of the matter for the benefits of Nigerians.

Meanwhile, also at the Wednesday hear, the Attorneys General of Katsina Lagos, CR, 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.

It would be recalled that the AGF Malami, last Wednesday, while reacting to the February 8 ruling by the Supreme Court barring the CBN from implementing its February 10 deadline for illegalising old Naira notes in circulation in the country, disclosed that the Federal Government would comply with the Supreme Court’s order ‘in line with the rule of law.’

“The order was granted by the Supreme Court and the order is to lapse on (next) Wednesday which is the day of the hearing. With that position in mind, we have taken steps to file an objection challenging the jurisdiction of the court to entertain the matter.

“Jurisdiction on the grounds that when you talk of monetary policy regardless of the characters they take, the Central Bank is an indispensable and a necessary party for that matter.

“What we have at hand is a situation where the Central Bank is not joined as a party and if the Central Bank as an institution is not joined as a party the position of the law is clear that the original jurisdiction of the Supreme Court cannot be properly invoked.

“So we have given considerations to diverse issues inclusive of the issue of jurisdiction and come Wednesday we will argue the case from that perspective amongst others.

“There is no doubt the fact that the ruling of the Supreme Court regardless of the prevalent circumstances is binding and then within the context of the rule of law, you can equally take steps that are available to you within the context of the spirit and circumstances of the rule of law and what we are doing, in essence, is compliance with the rule of law both in terms of obedience to the ruling and in terms of challenging the ruling by way of putting our own side of the story, putting across our case, challenging jurisdiction.

“So the issue of obedience to the ruling of the Supreme Court is out of it. We are wholeheartedly in agreement that naturally we are bound by it and will comply accordingly but within the context of compliance, we shall challenge the ruling by way of filing an application seeking for it to be set aside, it is all about the rule of Law.

“The rule of law provides that there has to be obedience to the judgment and orders of the supreme court, the rule of law provides that when you are not happy with a ruling you can file an application for setting aside and in compliance with the rights and privileges vested in us as a government we are equally looking at challenging the order and seeking for it to be set aside,” AGF Malami said.

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

CBN Branch Controller in Bauchi State, Haladu Idris Andaza, during a chat with journalists declared that the old Naira notes were no longer legal tender in the country.

The 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.

Meanwhile, Nigerians have continued to express worry over the statements credited to the CBN Governor over allegation of hoarding of the new Naira notes, as they wondered where those allegedly hoarding the new money obtained them from in the first place.

Speaking while briefing members of the Diplomatic Corps on the Naira redesign, earlier Tuesday, in Abuja, at the Ministry of Foreign Affairs, the CBN Governor, Godwin Emefiele called for understanding of the foreign community, as he blamed Nigerian politicians for the crisis, who accused of hoarding the currency notes, further cautioning that law enforcement agencies will arrest those who disrespect the Naira.Emefiele also restated the CBN’s commitment towards deepening cashless policy of the bank in Nigeria.

“The CBN has noticed that some politicians are buying the new notes and storing them for political purposes.

“We have also noticed that some Nigerians are capitalising on the transition to charge exorbitant fees or demand cash payment on the false pretext that PoS don’t work, especially at petrol stations.

“These selfish actions for personal monetary gain are creating hardship for Nigerians and may come at the expense of fellow citizens’ lives and livelihood.

“We have noticed that some members of the public are hoarding the new notes thereby restricting their flow through the economy.

“Cash kept at home will not circulate but may fuel a perception of scarcity which leads to higher demand for the currency, signalling to those who don’t have an urgent or immediate need to store cash.”

The CBN Governor stated further that there is tremendous tension and elevated agitation by leaders who should be calming the frayed nerves of the citizens.

“We believe that a large proportion of these agitations are staged and sponsored propaganda or an exaggeration of the reality. No doubt that there are pockets of pressure in some areas, and the CBN is working hard to shift resources to those areas in order to ease the tension.

“The situation is substantially calming down since the commencement of the Over-the-Counter payments to compliment ATM disbursements and the use of super agents,” Emefiele said.

Ahead of Wednesday’s Supreme Court, the Presidency, had Tuesday, dismissed as false the claims that the Federal Government or the Central Bank of Nigeria (CBN) had refused to recognise the old N200, N500 and N1,000 notes as legal tender despite a Supreme Court ruling.

Mr Garba Shehu, the Senior Special Assistant to President Muhammadu Buhari, in a statement, however, said both the government and the CBN took ‘a preemptive action on the legality of currency as a legal tender in view of the pendency of the case before the Supreme Court.’

”We wish to state that it is not true that the Federal Government or the Central Bank of Nigeria, CBN have taken a preemptive action on the legality of currency as a legal tender in view of the pendency of the case before the Supreme Court.

”The position of the government and the CBN will be made known upon the determination of the suit coming up tomorrow (Wednesday).”