Relief, joy as S’Court halts CBN deadline on old naira

Despite came the way of Nigerians yesterday after the Supreme Court granted an interim injunction restraining the Central Bank of Nigeria (CBN) from enforcing tomorrow’s deadline for the usage of redesigned naira notes.

The World Bank and the International Monetary Fund (IMF) also faulted the deadline.

They said the 108-day window given by the apex bank to rest the old N1,000, N500 and N200 bills was too short.

Shortly after the apex court granted the temporary injunction yesterday, the CBN Governor, Godwin Emefiele, was sighted at the Presidential Villa, Abuja.

It was his second visit to the State House in two days to confer with President Muhammadu Buhari over the controversial naira redesign policy.

During his first visit on Tuesday, Emefiele met the President along with the Chairman of the Nigeria Governors Forum (NGF)/Sokoto State Governor Aminu Tambuwal and the Chairman of the Progressive Governors Forum (PGF)/Kebbi State Governor, Atiku Bagudu, over the raging cash crisis.

The CBN boss did not grant any press interviews.

The Supreme Court said its decision to issue an interim injunction restraining the Federal Government and others from enforcing the February 10 deadline for the use of old naira notes was because the issue was of real urgency.

The apex court, in a unanimous ruling by a seven-member panel, led by Justice John Okoro, held that the ex-parte application filed by Kaduna, Kogi and Zamfara states raised an issue of real urgency, requiring the intervention of the court.

Justice Okoro, in the lead ruling, held: “After careful consideration of this ex-parte application, and the grounds in support of same, this court finds that there is a real urgency for this court to intervene by the grant of this application.

“Accordingly, this application is hereby granted as prayed.

“That is to say, an order of interim injunction restraining the Federal Government of Nigeria, either by itself or acting through the Central Bank of Nigeria (CBN) and/or the commercial banks, its agents; agencies, corporations, ministries, parastatals, organisations or through any person or persons (natural and artificial) howsoever, 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 plaintiffs/applicants’ motion on notice for interlocutory injunction.”

Justice Okoro adjourned till February 15 for the hearing of the motion on notice filed by the three states for interlocutory injunctions pending the determination of the substantive suit.

The judge ordered the parties to file all necessary documents before the next date.

Other members of the panel – Justices Amina Augie, Mohammed Garba, Ibrahim Saulawa, Adamu Jauro, Tijani Abubakar and Emmanuel Agim – agreed with the lead ruling.

The applicants’ lawyer, Abdulhakeem Mustapha (SAN), while moving the ex-parte application, said it was in the interest of the country and to prevent impending anarchy for the court to grant the order sought

“The excruciating situation created by this policy is almost leading to anarchy in the country today,” he said.

The SAN noted that some banks have already shut their doors to customers.

Mustapha said: “If this policy is not halted, it could lead to anarchy. This application is brought in the interest of the country so that it will not burn.”

The three states sued the Federal Government, through the Attorney General of the Federation (AGF) on February 3, querying the timing and propriety of the naira redesign policy and the short deadline imposed for the phasing out of the old notes.

Mahmud Magaji (SAN), who led the Federal Government’s legal team, which included the Acting Director, Civil Appeals in the Federal Ministry of Justice, Tijani Gazali (SAN), told the court that his client filed a notice of preliminary objection.

The AGF is, among others, challenging the court’s jurisdiction to hear the suit.

The defendant is contending that the proper forum for the hearing of such a case is the Federal High Court.

The AGF is also querying the plaintiffs’ right to approach the court on the issues raised in the suit and wants the court to strike it out.

The defendant hinged its request on the grounds that the “suit is challenging the power of the Federal Government of Nigeria through its agency, the CBN, to withdraw old banknotes and introduce new ones.”

The AGF added: “The plaintiffs’ suit is about the power vested on the CBN by the CBN Act, 2007 to call in its banknotes and introduce new ones.

“This suit as presently constituted falls under Section 251(1)(a)(p)(q) & (r) of the Constitution (exclusive jurisdiction of the Federal High Court) by virtue of the subject matter and parties.

“The claims or reliefs are not against the Federation, but the Federal Government and its agency, the CBN.

“The Federal Government of Nigeria is distinct from the Federation or the Federal Republic of Nigeria.

“The plaintiffs have no grievance whatsoever against the Federation of Nigeria.

“This suit has disclosed no dispute that invokes this court’s original jurisdiction as constitutionally defined.

“This suit is an abuse of judicial process. The plaintiffs have no locus standi to institute this action.

“The plaintiffs have no reasonable cause of action against the defendant.