Demonetisation Policy: 9 state govts, join suit

*S’Court decline to make fresh order

BY ANDREW OROLUA

The Supreme Court of Nigeria on Wednesday joined nine state governments to the law suit filed by Kaduna, Kogi and Zamfara State governments against the demonetisation policy of the Federal Government which is being executed through the Central Bank of Nigeria (CBN) under the directive of President Muhammadu Buhari .

Seven state governments: Lagos, Cross River, Ekiti, Ondo, Katsina, Ogun and Sokoto through their Attorney Generals were joined as co- plaintiffs, by the Supreme Court while two others, Bayelsa and Edo state governments and their Attorney Generals were joined to the suit as respondents.

Four other state governments: Rivers, Kano ,Jigawa and Niger State governments who filed separate suits on same demonetisation policy of the Federal Government were ordered to put in all their processes before Wednesday next week as their suit will be consolidated.

He explained that with the nine additional parties , the suit is yet to be properly before the court, therefore none of the applications relating to the suit will be taking until Wednesday next week.

The apex court ordered the plaintiff counsel A M. Mustapha to amend the originating processes to reflect Attorney Generals of Lagos, Cross River, Ekiti, Ondo, Katsina Ogun, Sokoto States as co-plaintiffs and Bayelsa and Edo Attorney Generals as co- respondents.

When the matter was called , Abdulhakeem Mustapha the counsel for plaintiff after announcing his appearance told the panel that he had filed an affidavit showing that the Federal Government had flaunted the order of the court made on February 8.

Respondent counsel , Kanu Agabi ,SAN, said that “rumours are out there trying to infer that the government disobey the court order”.

Agabi SAN a former Attorney General the Federation also informed the court that he filed a preliminary objection challenging the suit.

The panel of justices of the apex court said it will not make another order following an oral application on Wednesday by the plaintiff counsel Abdulhakeem Mustapha for an order extending the interim order that suspended the February 10 deadline for old N200, N500 and N1000 notes to be legal tender.

The justices said they cannot make another order in that regards as counsel complaint is that the order made on February 8 has not been obeyed.

In an orbiter (side comments) justice Adamu Augie one of the panelists said: “Once you submitted yourselves to Court ,you have a duty to comply ,so you are both reminded that the suit is before the court,”

Presiding Justice John Okoro said : “We made the order of February 8.We all leave in this country .You said they have not obey and you are asking for same fresh order?”

He therefore adjourned the suit filed by Kaduna,Kogi and Zamfara States to Wednesday , February 22, 2023 for definite hearing.

In the suit marked: SC/CV/162/2023 the three state governments want the apex court to make the following declarations:

“That the demonetisation policy being currently carried out by the CBN under the directive of the President is not in compliance with the extant provisions of the Constitution, Central Bank of Nigeria Act, 2007 and extant laws on the subject.

“That the three-month notice given by the Federal Government through the CBN, under the directive of the President, 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.

“That in view of the express provisions of Section 20(3) of the Central Bank of Nigeria Act 2007, the Federal Government, through the CBN, 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.

The three states filed along with the originating summons, a motion for an injunction, in which they are praying restraining the Fed Govt and it’s agents, including the CBN, and commercial banks, among others, “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 substantive suit.”

READ ALSO: Group donates school materials to 2000 pupils in…

They stated that the grounds on which they are seeking the injunction include that, “since the announcement of the new naira note policy, there has been an acute shortage in the supply of the new naira notes in Kaduna, Kogi and Zamfara States. Citizens who have dutifully deposited their old naira notes have increasingly found it difficult and sometimes next to impossible to access new naira notes in order to go about their daily activities.

“This inadequacy of the notice coupled with the haphazard, cack-handed manner the exercise is being carried out and the attendant hardship same is wrecking on Nigerians (and this includes citizens of Kaduna, Kogi and Zamfara States of Nigeria) has been well acknowledged even by the Federal Government of Nigeria itself.

“The Naira (whether old or new) is scarce.”