Nigeria’s Attorney General, Abubakar Malami, has asked the Supreme Court to dismiss the lawsuit filed by three state governors concerning the currency redesign crisis.
Following the law suit, the Supreme Court ordered a temporary suspension of the deadline for using old naira notes.
The Attorney General argued that the Supreme Court lacks the jurisdiction to rule on issues that the lawsuit raises.
The suit was filed by three states; Kaduna, Kogi and Zamfara States, all in the northern part of Nigeria and controlled by the ruling All Progressives Congress (APC).
The respondent maintains that the case is not a dispute between the federation and the state governments, but merely an issue about Central Bank of Nigeria’s policy.
It says the suit is, therefore, not qualified to be taken directly to the Supreme Court for adjudication. It argues that the suit ought to have been commenced at the Federal High Court.
The Attorney-General of the Federation (AGF), Abubakar Malami, sued as the sole defendant as the representative of the federal government, filed his opposition to the suit as a preliminary objection against it at the Supreme Court.
Malami’s filings came hours after the Supreme Court granted a request by the three state governments for an order temporarily halting the CBN’s plan to end the use of the old currency notes on February 10, 2023.
Neither the federal government nor the CBN has commented on their plan to comply with the ruling.
IMF Advises CBN To Extend Deadline
The International Monetary Fund(IMF) has urged the Central Bank of Nigeria(CBN) to extend the deadline for use of the old notes given the disruptions in trading activities caused by the scarcity of the new notes.
In a statement, the IMF urged the CBN to extend the deadline for use of the old notes if the scarcity of the notes persists at the expiration of the February 10 deadline.
“In light of hardships caused by disruptions to trade and payments due to the shortage of new banknotes available to the public, in spite of measures introduced by the CBN to mitigate the challenges in the banknote swap process, the IMF encourages the CBN to consider extending the deadline, should problems persist in the next few days leading up to the February 10, 2023 deadline.”
International Monetary Fund
Thirty-Six Governors Beg Buhari To Revisit Cashless Policy
Also, thirty-six governors in Nigeria have implored President Buhari to extend the deadline and revisit the CBN cashless policy.
The Governors, under the aegis of the Nigeria Governors’ Forum, made the demand in a letter addressed to the President and signed by the Chairman of the Forum, Governor Aminu Tambuwal, of Sokoto State
The Governors disclosed in a letter that the speed of implementation of the policy is a recipe for anarchy in the country and they urge a re-think of the policy.
“Regarding the reviewed cash withdrawal limit, we have found from synthesizing experiences across the country that the informal sector in the States, particularly in the Northern and Niger Delta States almost wholly depends on cash transactions because of the nature of their trade.
“It is our view, Sir, that an immediate limitation in the use of cash without robust engagement with stakeholders as well as the provision of accessible alternatives will deny such people legitimate sources of livelihood.”
Nigeria Governors’ Forum
They added, “We most respectfully pray, Mr. President, to approve an expanded time frame for the implementation of the policy and direct the CBN to make the new notes available within the enlarged time frame.”
Last November, Nigeria’s Central Bank redesigned the 200, 500, and 1,000 naira banknotes aimed at curbing soaring inflation, cash hoarding and counterfeiting.
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