Three states of the Nigerian federation have dragged the Federal Government to court over the current issues bordering on the redesign of the country’s currency, Naira.
The three states are Zamfara, Kaduna and Kogi State. In their originating summons, the three states through their Attorneys General, are asking the court to compel the Federal Government, through its agent, the Central Bank of Nigeria to suspend its new naira note policy.
The plaintiffs are asking in their suit, “Whether the demonitization Policy of the Federation viz: the withdrawal of the old N1000, N500 and N200 Bank Notes being carried out by the Federal Government of Nigeria through the Central Bank of Nigeria, under the directive of the President of the Federal Republic of Nigeria is in compliance with the provision of the Constitution of the Federal Republic of Nigeria 1999 (as amended), Central Bank of Nigeria Act, 2007 and the extant laws on the subject?
“Whether the 3-month Notice given by the Federal Government of Nigeria through the Central Bank of Nigeria under the directive of the President of the Federal Republic of Nigeria, the expiration of which the old Bank Notes shall cease to be a legal tender, satisfies the provision of Section 20(3) of the Central Bank of Nigeria Act 2007 which specifies that “Reasonable Notice” be given by the Central Bank before it can call in its banknotes and after which same cease to be legal tender?
“Whether the demonitization Policy of the Federation viz: the withdrawal of the old N1000, N500 and N200 Bank Notes being carried out by the Federal Government of Nigeria through the Central Bank of Nigeria, under the directive of the President of the Federal Republic of Nigeria, does not directly interfere with the powers and functions of the Plaintiffs and the welfare of the citizens of the Plaintiffs’ State?
“Whether, in view of Section 20(3) of the Central Bank of Nigeria Act, the Federal Government of Nigeria through the Central Bank of Nigeria under the directive of the President of the Federal Republic of Nigeria have the powers to give a timeline for the redeeming any of its banknotes and the expiration of which timeline entitles the Bank to refuse to redeem same?”
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In their prayer, the three states demanded as follows: A DECLARATION that the Demonitization Policy of the Federation being currently carried out by the Central Bank of Nigeria under the directive of the President of the Federal Republic of Nigeria is not in compliance with the extant provisions of the Constitution of the Federal Republic of Nigeria 1999 (as amended), Central Bank of Nigeria Act, 2007 and extant laws on the subject.
2. A DECLARATION that the three-month Notice given by the Federal Government of Nigeria through the Central Bank of Nigeria under the directive of the President of the Federal Republic of Nigeria, the expiration of which will render the old Banknotes inadmissible as legal tender, is in gross violation of the provisions of Section 20(3) of the Central Bank of Nigeria Act 2007 which specifies that Reasonable Notice must be given before such a policy.
3. A DECLARATION that in view of the express provisions of Section 20(3) of the Central Bank of Nigeria Act 2007, the Federal Government of Nigeria through the Central Bank of Nigeria has no powers to issue a timeline for the acceptance and redeeming of banknotes issued by the Bank, except as limited by Section 22(1) of the CBN Act 2007, and the Central Bank shall at all times redeem its bank notes.
4. AN ORDER of this Honourable Court directing the immediate suspension of the demonitization policy of the Federal Government of Nigeria through the Central Bank of Nigeria under the directive of the President of the Federal Republic of Nigeria until it complies with the relevant provisions of the law.”