Supreme Court faults Buhari over naira redesign policy

The Supreme Court has faulted President Muhammadu Buhari for failing to consult the state governors on the implementation of the naira redesign policy.

The apex court held that: “The position of the president as Agent of the federation imposed a duty of consultation on him. Not to do so makes him a dictator.

“States have a right to be consulted by President before the directive to the CBN, as constituents of the Federation.”

The Supreme Court decried the implementation of the naira policy of the Central Bank of Nigeria (CBN), saying reasonable notice was not given for the implementation of the naira redesign policy.

A seven-man panel of the apex court made the declaration in a judgement delivered on Friday.

Justice Emmanuel Agim, who led a seven-man panel of Justices of the Supreme Court, declared invalid the approval given to the CBN by President Buhari for the withdrawal of the old naira notes.

The court, however, ruled that the old N200, N500, and N1,000 notes remain legal tender till December 31, 2023.

“I hold that no reasonable notice was given by the CBN under section 20 of the CBN Act. The directive is invalid and I hereby declare it so.

“In other countries, decisions to change currencies follow due process and in accordance with democratic dictates, not after a side talk with their Central Bank chiefs.

“The directive given by the President, through a press release by the CBN is invalid,” Justice Agim held.

No fewer than 16 states filed suits against the Federal Government over the naira redesign policy.

All the states in their respective motions pitched their tents with the three aggrieved states (Kaduna, Kogi, and Zamfara) that initially ignited the legal battle.

The 16 states are Kaduna, Kogi, Zamfara, Ondo, Ekiti, Katsina, Ogun, Cross River, Lagos, Sokoto, Rivers, Kano, Nasarawa, Abia, Jigawa, and Niger.

Edo and Bayelsa states, however, pitched their tents with the Federal Government.

Edo and Bayelsa’s counsel told the Supreme Court that they were in support of the cashless policy regime and sought to be joined as respondents.

The apex court had temporarily stopped the withdrawal of old naira notes from February 10, 2023, across the country.

Buhari later declared that the old N200 should be used with the new notes till April 10, 2023, while the old N500 and N1,000 notes ceased to be legal tender in the country.

The President also directed the CBN to recirculate only the old N200 notes.

It would be recalled that the apex bank announced plans to redesign the currency on October 26, 2022.

It later set December 15 as the official commencement date for the circulation of the new naira notes, which President Buhari unveiled on November 23, 2022.

The CBN later issued a revised cash withdrawal policy, stating that cash withdrawals above N100,000 and N500,000 for individuals and corporate organisations will attract processing fees of five per cent and 10 per cent, respectively.

The Star