Naira Deadline: Ondo, Kano governments drag FG, CBN to Supreme Court
The governments of Kano and Ondo States have joined that of Kogi, Kaduna, and Zamfara states at the Supreme Court against the Federal Government of Nigeria over the Central Bank of Nigeria (CBN) naira swap deadline policy.
Recalled that earlier, governments of Kogi, Kaduna, and Zamfara States urged the Supreme Court to halt the February 10th deadline for the usage of old naira notes citing scarcity of the naira as a key reason.
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The Supreme Court in an exparte ruling restrained the federal government and CBN from enforcing the deadline of Friday, February 10 for outdating the old notes as legal tender, the federal government has petitioned the high court to overturn the order.
Kano and Ondo State governments are now buttressing the substantive suit already reserved for Wednesday, February 15, 2023, by the Supreme Court for hearing and determination.
READ ALSO: Kaduna, Kogi, Zamfara Govts drag FG, CBN to court over new naira
In a Suit Number: SC/CS/200/2023, filed Thursday evening and slighted by The Guardian, the Kano State Attorney General, through his Counsel, Sunusi Musa (SAN) is seeking the Apex court to declare that the President of Nigeria, cannot unilaterally direct the Central Bank of Nigeria to recall the now N200, N500, and N500 old Bank notes without recourse to the Federal Executive Council and National Economic Council, respectively.
Additionally, the applicant is also seeking for mandatory order ordering the Federal Government of Nigeria to change its mind about the Naira redesign since it allegedly violates the 1999 Constitution of the Federal Republic of Nigeria (as amended).
The Kano State Government is asking for a mandatory order to overturn the federal government’s decision to remove the N200, N500, and N1,000 notes from circulation because it will negatively affect the financial situation of more than 20 million Kano citizens.
In an originating summon filed and signed by Charles Titiloye, the Ondo State Attorney-General. The state government asked the Supreme Court to stop the implementation of the directive issued by the federal government through the Central Bank of Nigeria (CBN) limiting daily cash withdrawals from banks.
Mr Titiloye said the policy has totally paralysed and brought to a standstill the activities of the Ondo State Government and adversely affected economic and commercial activities in the state.
The lawsuit claimed that the daily cash withdrawal violated the legal rights of the Ondo State Government and its citizens to access funds for the implementation of developmental projects, small credit facilities to petty traders (who do not have accounts in banks), and to conduct regular business in the state.
The Ondo State Government also asked the Supreme Court to decide whether the guidelines issued by the federal government on maximum daily cash withdrawal and the continuous suffering and hardship caused by the implementation of the said policy are not in conflict with the express provision of section 2 of the Money Laundering Act, Sections 20, 39 and 42 of the Central Bank of Nigeria Act.
It also averred that while it had more than 149 ministries, departments, and agencies to run on a daily basis in a state with more than three million people, less than five hundred thousand people had bank accounts through which bank transfers could be made.
“Consequently the policy of the Federal Government has totally paralysed the economy of the state,” the state government said.
