Naira redesign: Uncertainties as FG and States resume legal fireworks related to the Supreme Court

The legal skirmishes between the federal government and the three northern states controlled by the All Progressives Congress, APC—Zamfara, Kaduna, and Kogi—over the controversies surrounding the Central Bank of Nigeria’s (CBN) Naira redesign policy will pick back up today, Wednesday, at the Supreme Court.

The Supreme Court will decide whether to uphold the interlocutory injunction it had previously issued against the CBN after hearing the merits of the main application filed by the petitioner (Zamfara, Kaduna, and Kogi).

Remember that the Supreme Court last week obtained an interim judgment preventing the apex bank from discontinuing the use of old naira notes on February 10? As a result, the CBN’s policy to redesign the naira took on a new dimension.

Despite a severe shortage of the newly redesigned N200, N500, and N1,000 banknotes, a seven-member court panel chaired by Justice John Okoro issued the ruling.

Based on an ex parte plea submitted by three northern states held by the ruling APC, the court temporarily granted the order, rescinding the CBN’s February 10 deadline to stop the validity of the old versions of the banknotes.

According to a Obasanjonews, Kaduna, Kogi, and Zamfara state governments sued the federal government in the Supreme Court over the difficulty brought on by the lack of the newly designed naira notes.

The states asked the Supreme Court to issue a restraining order to prevent the CBN from discontinuing the use of old currency notes on February 10, as the bank had threatened.

Despite a severe shortage of the newly redesigned N200, N500, and N1,000 banknotes, a seven-member court panel chaired by Justice John Okoro issued an interim injunction.

Based on an ex parte plea submitted by three northern states held by the ruling APC, the court temporarily granted the order, rescinding the CBN’s February 10 deadline to stop the validity of the old versions of the banknotes.

According to a Obasanjonews, Kaduna, Kogi, and Zamfara state governments sued the federal government in the Supreme Court over the difficulty brought on by the lack of the newly designed naira notes.

The states asked the Supreme Court to issue a restraining order to prevent the CBN from discontinuing the use of old currency notes on February 10, as the bank had threatened.

They emphasized the misery that many Nigerians have experienced as a result of the new currencies’ unavailability.

Despite the government’s promises to make the money available, they said that “many citizens have to date not seen the freshly redesigned naira notes, let alone swapped their old notes for the new ones.”

Justice Okoro accepted the motion as requested after hearing from the applicants’ attorney, a decision he claimed his panel made after “careful thought.”

Additionally, he issued an order of interim injunction “restraining the Federal Government of Nigeria through the Central Bank of Nigeria (CBN) or the commercial banks from suspending, determining, or ending on February 10 the period during which the now-outdated 200, 500, and 1,000 naira denominations of the naira may no longer be legal tender pending the hearing and determination of their motion on notice for an interlocutory injunction.”

In the meantime, many Nigerians have expressed anxiety over not being able to use the new naira notes.

Mr. Clement Okon, from Dawaki, Bwari Area Council of the Federal Capital Territory, Abuja, said that the lack of commercial bank branches in the rural areas had made the situation in his area worse.

“I went to get cash and spent $3,000 on $10,000 in fees. “I’m curious about what’s going on in Nigeria,” he remarked.

However, Yusuf Abdullahi, a POS operator, claimed that the procedure for obtaining the cash from the banks was to blame for the high commission.

“Taking money out of the bank is not simple.” To get the money, we go above and beyond. “Therefore, others are prepared if anyone isn’t,” he said.

On Tuesday, some retailers and drivers in the Federal Capital Territory (FCT) of Abuja began to refuse the outdated naira notes.

In addition, on Tuesday, demonstrators blocked the key Lagos-Abeokuta Expressway at the Sango-Ota axis because they were unable to use ATMs to withdraw cash.

They burned old tires in bonfires on both sides of the road, slowing up traffic.

Kazeem Sanni, the demonstrators’ leader, called it terrible that bank customers were unable to retrieve their money.

Sanni said, “The situation is awful because it has grounded and paralyzed commercial activities.”

He emphasized, “We made the decision to air our problems because we can no longer take this misery.”

He urged the CBN to immediately create additional fresh notes and make sure banks followed its instructions.

Olu Omotayo, president of the Civil Rights Realization and Advancement Network (CRRAN), urged the Supreme Court to be resolute in making a clear judgment that will be advantageous to the entire nation in a statement to the Daily Post.

The eminent lawyer Omotayo argued that the Court should take the chance to denounce the Central Bank’s obvious disregard for the Court’s ruling prohibiting the use of old currency in Nigeria.

“We anticipate that the Supreme Court will rise to the occasion tomorrow and denounce the Central Bank’s gross disregard for the Supreme Court’s judgment prohibiting the use of old currency in Nigeria.”

The Supreme Court Act’s Section 19(1) and (2) stated that in cases involving states and the federal government or states against states, the Supreme Court may order any course or matter that is before it to be transferred to a high court or magistrates’ court with ordinary jurisdiction in the place where the case is pending. Accordingly, the learned attorney general’s argument that the Supreme Court lacks jurisdiction and the suit should be dismissed is misconceived.

The inference is that the Supreme Court has the authority to transfer the case to the proper court with jurisdiction, even if it determines that it lacks initial jurisdiction in this case. We anticipate that the Supreme Court will make a clear decision that is in the best interests of the entire nation.