(Updated) Bayelsa, Edo Split Rank of States Opposing FG’s Naira Swap Policy, Confusion Persists as Supreme Court is Silent on Old Naira Notes

Alex Enumah in Abuja

Contrary to the position of the Nigerian Governors Forum, Bayelsa and Edo States on Wednesday appeared as co-defendants with the federal government in the suit challenging the naira swap policy at the apex court.

The Supreme Court however failed to renew its order extending the time within which the old Naira notes should remain in circulation.

The order which was issued last Wednesday lapsed today. 

However, some lawyers have argued that the order could not have lapsed since the motion on notice upon which it was premised has not been heard. They therefore argue that the order subsists

Three states of Kaduna, Kogi and Zamfara had last week dragged the federal government to the Supreme Court to stop the federal government and the Central Bank of Nigeria (CBN) from fully implementing the demonization policy introduced last October.

The three states pending the hearing of the suit requested for a temporary order of the apex court halting the scheduled ending of the old naira notes of 200, 500 and 1,000 denominations from February 10, 2023.

In granting the request, the apex court fixed hearing for February 15 and asked that the suit be served on the respondent (Attorney General of the Federation).

However, when the matter was called for hearing, nine states of the federation announced their desires to be joined as interested parties in the suit.

While seven states including Lagos, Katsina, Cross River, Ogun, Ekiti, Ondo and Sokoto sought to be joined as co-plaintiffs; Bayelsa and Edo informed the court that they desired to be joined as co-defendants.

Since there was no opposition to their joining, Justice John Okoro who led a seven man panel, granted the request and joined them as parties.

Following consent of parties, Justice Okoro subsequently directed Mr Samuel Ologunorisa SAN, who is representing Katsina State to move the application on behalf of all those seeking to be joined as co-plaintiffs, adding that they should amend their originating summons to reflect the name of all plaintiffs.

In the same vein, Mr Damian Dodo, SAN moved the application for Bayelsa and Edo as co-respondents and were also ordered to amend their statements of defense to reflect the new position of the case.

Subsequently, Justice Okoro adjourned hearing in the suit till Wednesday February 22.

Curiously, both Bayelsa and Edo belonged to the opposition People’s Democratic Party (PDP), while the seven joining the earlier three appellants belong to the ruling All Progressives Congress (APC); opposing the policy of the federal government.

Meanwhile, four other states including; Rivers, Kano, Jigawa and Niger have also filed a similar suit which the apex court held would be consolidated with the other suits.

The Supreme Court had last Wednesday temporarily halted the move by the federal government to ban the use of the old naira notes from February 10, 2023.

A seven member panel led by Justice John Okoro, halted the move of the federal government in a ruling in an exparte application brought by three northern states of Kaduna, Kogi and Zamfara.

The three states had specifically applied for an order of Interim Injunction restraining “the federal government through the Central Bank of Nigeria (CBN) or the commercial banks from suspending or determining or ending on February 10, 2023, the time frame with which the now older version of the 200, 500 and 1,000 denomination of the naira may no longer be legal tender pending the hearing and determination of their motion on notice for interlocutory injunction”.

Counsel to the applicants, Mr AbdulHakeem Mustapha, SAN, had urged the apex court to grant the application in the interest of justice and the well-being of Nigeria.

He stated that the policy of the government has led to an “excruciating situation that is almost leading to anarchy in the land”.

Delivering ruling in the motion, Justice Okoro, held that after a careful consideration of the motion exparte, this application is granted as prayed, “An order of Interim Injunction restraining the federal government through the Central Bank of Nigeria (CBN) or the commercial banks from suspending or determining or ending on February 10, 2023, the time frame with which the now older version of the 200, 500 and 1,000 denomination of the naira may no longer be legal tender pending the hearing and determination of their motion on notice for interlocutory injunction”.

He accordingly adjourned to February 15, 2023 for hearing of the main suit.

Kaduna, Kogi and Zamfara States had dragged the federal government to court to challenge the new policy which introduced new forms of the 200, 500, and 1,000 naira banknotes, which they claimed has brought excruciating situation upon the country. 

In the suit marked: SC/CV/162/2023 and filed on February 3, plaintiffs are seeking a declaration that the Demonetization Policy of the federation being currently carried out by the CBN under the directive of the President is not in compliance with the extant provisions of the Constitution and CBN Act, 2007 and actual laws on the subject.

Besides, plaintiffs want a declaration 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 CBN Act 2007, which specifies that Reasonable Notice must be given before such a policy.

Similarly, plaintiffs urged the court to declare that given the express provisions of Section 20(3) of the CBN Act 2007, the federal government 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. 

It is the claim of plaintiffs 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 and that citizens who have dutifully deposited their old naira notes have increasingly found it difficult and sometimes next to impossible to access new naira notes to go about their daily activities.

Plaintiffs in addition cited the inadequacy of the notice coupled with the haphazard manner in which the exercise is being carried out and the attendant hardship same is wrecking on Nigerians, which has been well acknowledged even by the government itself.

The Plaintiffs further maintained that the ten-day extension by the federal government is not sufficient to address the challenges bedeviling the policy.

They are therefore seeking an order of court directing the federal government to immediately suspend the policy until it complies with the relevant provisions of the law.