The Supreme Court has stopped the federal government from implementing the naira redesign policy, ordering that old N200, N500, and N1,000 notes be allowed to co-circulate with the new notes until December 31, 2023.
The seven-man panel led by Justice John Inyang Okoro, in its judgment, described the policy as an affront to the 1999 Constitution and therefore nullified it.
The federal government had backed the Central Bank of Nigeria (CBN) to implement the policy targeted at curtailing money laundering, terrorism financing and vote-buying ahead of February and March general elections.
Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
However, about 16 states led by Kogi, Kaduna and Zamfara had dragged the federal government to the Supreme Court over the policy and its deadline. They had prayed the court to stop the implementation, citing the federal government’s failure to follow laid down rules and the resulting economic chaos.
On February 8, the Supreme Court issued an interim injunction, restraining the federal government from implementing the policy, especially the February 10 deadline fixed by the CBN to phase out the old naira notes.
The federal government did not obey the order, questioning the jurisdiction of the Supreme Court to entertain the case. On February 16, President Muhammadu Buhari, in his national broadcast, approved the use of only the old N200 note alongside the redesigned notes.
The apex court held that President Muhammadu Buhari in his broadcast admitted that the policy is flawed with a lot of challenges.
Reading the judgment, Justice Emmanuel Agim, a member of the panel, condemned the President’s disobedience. He said the president’s broadcast of 16 February that only N200 notes should remain legal tender is autocratic and made Nigeria’s democracy look like a mere pretension.
“It is not in doubt that the President refused to comply with the order of the court that the old 200, 500, and 1,000 naira notes should continue to be legal tender,” the court said.
“Interestingly, there is even nothing to show that that the President’s directive for the release of N200 notes was implemented.
“I agree that the first defendant ought not to be heard when the president has refused to obey the authority of this court.
“Disobedience of order of court shows the country’s democracy is a mere pretension and now replaced by autocracy. This suit is meritorious.”
He also held that the court has the jurisdiction to entertain the suit, dismissing the preliminary objections by the defendants – the Attorney General of the Federation, Bayelsa and Edo states.
In the unanimous judgment, the court held that the unlawful use of executive powers by the President, inflicted unprecedented economic hardship on the citizens by denying them ownership of and access to their money.
Citing Section 23(2)1 of the constitution, the court held that the dispute between the Federal Government and states must involve law or facts.
The naira redesign policy ushered in tremendous economic hardship due to scarcity of the new naira notes.
The court said the policy has led to some people engaging in trade by barter in this modern age in a bid to survive.
The apex court held that President Buhari breached the Constitution of the Federation in the ways he issued directives for the re-designing of the Naira by the CBN, including his failure to consult the National Council of States, Federal Executive Council (FEC) and the National Economic Council (NEC) before directing the CBN to implement the policy.
According to the Supreme Court, Buhari’s attempt to unconstitutionally implement the policy breached the fundamental rights of Nigerians in various ways.
The apex court said such use of powers by President Buhari is not permitted under democracy and in a society like Nigeria.
However, it is not clear what becomes of the policy now. There is concern by the masses, who have been severely impacted by the crash crunch resulting from the policy implementation, that the federal government, which is notorious for flouting court orders, may choose to defy the Supreme Court once again.