…Declares Buhari’s order on new naira invalid
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The Supreme Court has ordered the Federal Government to allow the old N200, N500 and N1000 notes remain legal tender until December 31, 2023.
It also ordered the old notes should co-exist with the new notes until December 31 before which the Fed Government was to put in place measures to ensure the availability of the new notes.
The court handed down the orders on Friday in its judgment on the suits filed by about 16 States to challenge the naira swap policy of the Fed Government.
In a unanimous judgment, a seven-member panel of the court, led by Justice John Okoro, faulted the procedure adopted by the Fed Govt in introducing and implementing its cashless/naira swap policy.
Justice Emmanuel Agim, in the lead judgment, held that condition precedent was not met before President Muhammadu Buhari directed Governor of the Central Bank of Nigeria(CBN) to distribute the new notes and withdraw the old ones.
Justice Agim held that the directive by Buhari to the CBN Governor to distribute new notes and withdraw old ones was invalid because no reasonable notice was given to Nigerians as required under Section 20 (3) of the CBN Act.
He noted that rather than issuing a formal or public notice, what the CBN governor did was to simply give a press statement, which he equated to the required three-month notice under Section 20(3) the CBN Act.
He said such press statement did not qualify as a reasonable notice envisaged under the CBN Act.
The judge added that the Fed Govt’s reliance on the said press remarks as the notice of plan to distribute new naira notes and withdraw of the old ones showed its disregard for the importance of giving reasonable notice as a valid foundation for the introduction of new naira notes and withdrawal of old ones.
He held that since the requirement that reasonable notice should be given was not met by the Fed Govt, the directive given by the President to the CBN governor for the distribution of the new notes and withdrawal of the old ones was invalid.
Justice Agim expressed displeasure at the Fed Govt’s failure to obey its interim injunction issued on February 8 ordering that the old notes should remain legal tender until the conclusion of the case.
The judge noted that rather than comply with the order, President Buhari made a national broadcast during which he varied the order made by the court.
He held that there was no dispute that President Buhari disobeyed the court, because in doing so, the President in his February 16 broadcast, directed that only the old N200 notes that should remain in circulation.
Justice Agim held that the rule of law, on which our democratic governance is founded, did not give the President or any other person the discretion to vary an order of court.
The judge further held that the disobedience to court order by the President, in a democracy such as that of Nigeria, was a sign of the failure the Constitution, a threat to democratic governance and a drift towards autocracy.
The judge held that had the Fed Govt complied with due process and consulted widely before introducing such a policy with huge impact of the nation, the current disorderliness and pain being experienced by the citizens would have been avoid.
He held that, in line with democratic norm, the Fed Govt was required to consult widely and obtained broad consensus from all stakeholders, including the nation’s component states before introducing such a policy.
“It is not in dispute that the President of Nigeria did seek the advice of the National Council of State, the National Economic Council, the National Security Council, the Federal Executive Council and other stakeholders before directing the CBN governor to issue new naira notes and withdraw the existing ones.
“Before introducing such policy with far reaching effects on the constituent states of the federation, the President ought to consult widely with all stakeholders,” Justice Agim said.
He noted that even when the president realised belatedly, the need to consult, he invited the CBN governor to brief the National Council of State on the policy, but yet failed to heed the advice given by the council.
Drawing examples from Europe and other developed societies, Justice Agim said in most case where new notes are to be introduced, they co-exist with the old notes for a minimum of one year.
He recalled that a hasty execution of the naira policy in India some years ago created major disruptions in the country’s socio-economic life as is being witnessed in Nigeria today.
Justice Agim faulted the cash withdrawal limit also contained in the policy, and held that it was a violation of the right of the owners of such funds to their property and therefore, unlawful.
Earlier in the judgment, Justice Agim dismissed all the objections raised against the suit by the defendants – the Attorney General of the Federation (AGF), Attorney General of Bayelsa State and the Attorney General of Edo State.
The court held that, as against the defendants’ contention that the suit ought to be filed at the Federal High Court, it was properly filed before the apex court because it bordered on dispute between some states and the Fed Govt in regard to the President ‘s exercise of the Executive powers of the federation.
He also held that the plaintiffs had the locus standi (the legal right) to approach the court on the issue because the Fed Govt’s economic policy has adversely affected their activities in the state and disrupted the socio-economic life of the people.
He held that the suit did not such on which the Federal High Court has exclusive jurisdiction because it was not a suit between the CBN and other banks.
The judge also that the CBN was not a necessary party in the case because it is an agency of the Fed Govt, which was sued through the AGF.
Other members of the panel – Justices Amina Augie, Mohammed Lawal Garba, Ibrahim Saulawa, Adamu Jauro, Tijani Abubakar, including Justice Okoro – agreed with the lead judgment.
Governors Nasir El-Rufai, Yahaya Bello and Bello Muhammad as Bello Matawalle were in court to witness proceedings on Friday.
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