Some state governments have challenged President Muhammadu Buhari’s decision to stick with the deadline for the naira swap policy, which he stated in yesterday’s national broadcast.
Despite the Supreme Court order that old notes should remain legal tender till next Wednesday, President Buhari said yesterday that N500 and N1,000 are no longer legal tender in the country.
This is even as he approved the continued use of the old N200 as legal tender till April 10.
The president disclosed this yesterday morning during an address to Nigerians.
Kaduna, Kogi, Zamfara, Ekiti, and Kano states had taken the federal government to court over the scarcity of the new naira notes which was causing untold hardship to their citizens.
The Supreme Court had said all parties should maintain the status quo till next Wednesday when it will hear the suit.
However, with the pronouncement yesterday morning, the president seemingly overruled the Supreme Court’s decision.
Particularly, Buhari sympathised with Nigerians over the difficulties being experienced over new monetary policies aimed at boosting the economy and tightening the loopholes associated with money laundering.
He further explained that it was to also sustain the gains of his administration in the fight against terrorism and insecurity which has, undoubtedly, been impacted by several internal and external factors.
Part of his speech read: “Fellow citizens, while I seek your understanding and patience during this transient phase of implementation, I feel obliged to avail you of a few critical points underpinning the policy decision. These include:
“The need to restore the statutory ability of the CBN to keep a firm control over the money in circulation. In 2015 when this administration commenced its first term, Currency-in-Circulation was only N1.4 trillion.
“The proportion of currency outside banks grew from 78%in 2015 to 85% in 2022. As of October 2022, therefore, currency in circulation had risen to N3.23 trillion; out of which only N500 billion was within the Banking System while N2.7 trillion remained permanently outside the system; thereby distorting the financial policy and efficient management of inflation;
“The huge volume of Bank Notes outside the banking system has proven to be practically unavailable for economic activities and by implication, retard the attainment of potential economic growth.”
Notwithstanding the initial setbacks experienced, Buhari said the evaluation and feedback mechanism set up has revealed that gains have emerged from the policy initiative.
According to him,” I have been reliably informed that since the commencement of this program, about N2.1 trillion out of the banknotes previously held outside the banking system, had been successfully retrieved. This represents about 80% of such funds.”
Buhari further said on the 25th of February, 2023 the nation would be electing a new President and National Assembly members.
According to him, he is aware that this new monetary policy has also contributed immensely to the minimisation of the influence of money in politics, a positive departure from the past and a bold legacy step by this administration towards laying a strong foundation for free and fair elections.
States to Challenge President’s Decision
But one of the states that took the federal government to the Supreme Court, the Kogi State government said it would will await the decision of the apex court over the suit that was instituted by some state governors, including the governor of Kogi state, Yahaya Bello, and his Kaduna state counterpart, Nasir El Rufai, among others.
While reacting to Buhari’s decision to overrule the Supreme Court order by extending the acceptance of old naira notes to N200 till April, the Kogi state commissioner for Information, Kingsley Fanwo, assured Nigerians that the pronouncement of the president will not stop them from waiting for the Supreme Court’s verdict.
Fanwo said, “Yes, we are aware that the president has extended the acceptance of the old N200 notes but that has not answered our prayers at the apex court. We will wait to hear the determination of the Supreme Court of Nigeria.
The Ekiti state government said that plans are on to review the situation.
The state government had last Friday joined other states of the federation in the suit instituted against the federal government on the implementation of the new Naira notes policy.
Speaking with the LEADERSHIP Friday in Ado Ekiti, Chief Press Secretary to the governor, Mr Yinka Oyebode, said the government will soon decide on the next line of action.
Oyebode said, ” The attorneys-general actually went to the Supreme Court on behalf of their states.Since it is a joint suit, they will be meeting with a view to advise their principals on the next line of action. Definitely, they have to review the situation and then get back to their principals, since it is not just one attorney general of a state that did it; so many of them are joined in the suit.
“More have joined now and so they have to meet again and then review the situation and then advise appropriately,” he said.
Amid the latest pronouncement by President Muhammadu Buhari on new Naira redesign, Lagos State government yesterday insisted that the rejection of the old notes as captured in the president’s address is contrary to the Supreme Court’s stand.
The Lagos State Attorney-General and Commissioner for Justice, Mr. Moyosore Onigbanjo (SAN) who stated this when he appeared on a TVC Business Show, added that petrol stations, banks and others who reject the old notes could be prosecuted.
Pointing to the recent Supreme Court ruling, he noted that though President Buhari had enormous powers, he cannot repeal the order of the Supreme Court or any other court in the country.
According to him, the president’s stance is contrary to the Supreme Court’s position that the old and new notes should co-exist until the substantive matter, which will be heard on February 22, is heard.
The senior advocate decried the lingering naira scarcity in the land and the high charges by Point-of-Sale operators that have fostered untold hardship on Nigerians.
He noted that people who are hungry and have their means of livelihood eroded cannot care about any macro-economic policy or its short or long-term gain.
The Attorney-General said: “There is a contract between a customer and a bank that says when you bring your money to us you can have it back on demand. Any bank that refuses to give the money on demand has violated the terms and conditions of that contract and can be sued. I will advise Lagosians who have experienced suffering and injury as a result of the situation to press charges.
According to the Commissioner, it is ridiculous that Nigerians are buying their own money, adding that “even the producers of goods and services are losing money due to the scarcity of new notes to purchase their products easily.”
In Niger State, the government may not discontinue the suit based on President Muhammadu Buhari’s pronouncements.
Attempt to get a reaction from the state Attorney General and commissioner of Justice Nassara Dan-Mallam proved abortive but a senior officer in the Ministry of Justice who preferred anonymity said that the government will not rescind in the legal pursuit.
Meanwhile, LEADERSHIP Friday observed that most supermarkets are rejecting the old notes despite the governor’s directive to them not to reject the old notes.
It was however observed that make-shift shops were accepting the old notes leveraging on the window to deposit the money through the Central Bank of Nigeria.
It was also observed that long queues are building up for those who want to deposit the old notes through the CBN.
Speaking to LEADERSHIP Friday, a top administration official in the office of the chief press secretary to the governor said the government may not withdraw from the suit.
“What will the government achieve by withdrawing from the suit if the aim of joining the petitioners has not been achieved?” asked the official.
The official, who pleaded not to be mentioned in print, added that In his considered opinion the government would continue with the suit “until the needful is done”.
“The needful is to either extend the period for the other denominations or allow both the old and the new to be used simultaneously up till the end of the year,” he added.
