The Supreme Court judgement on Friday which overruled the implementation guidelines of both the Central Bank of Nigeria (CBN) and President Muhammadu Buhari on the naira redesign policy has shown that the latter, particularly, has limited powers in directing the affairs of the country, including in taking actions not backed by law, experts have said.
In a unanimous declaration, which experts now see as ground-breaking on an issue of constitutional law, with very far-reaching implications, the Supreme Court ordered that the old naira notes of N200, N500 and N1,000 shall remain as legal tender and continue to be in circulation till December 31, 2023, nullifying the president’s directive regarding the continuation of only the 200 naira note till April 10.
The judgement was on the suit filed by 16 states challenging the Federal Government’s naira redesign and swap policy, which initially mandated citizens to return all old N200, N500 and N1,000 notes to the banking system by January 31, 2023, but was later extended to February 10 following difficulties in complying with the policy and accessing the new notes. The policy was later adjusted with the president’s directives to the CBN to return only the old N200 notes to circulate with the new ones till April 10.
But in its judgement, the Supreme Court ruled that the suit brought before it by the 16 states did not have merit and that the policy in itself had some illegalities.
Consequently, the court declared as follows: “that the currency redesign and accompanying cash limit policies are inconsistent with the CBN Act.
“That the president cannot make a unilateral policy without consulting with and carrying along the states.
“That in issuing the policy, the president is under an obligation to also consult with and carry along the national council of states.
“That the policy has impeded the functions of the state governments.
“That the directive of the president is illegal.
“That the old version of the naira notes shall continue to be legal tender with the new naira notes until 23rd December 2023.”
Reacting to the judgement, Eyo Ekpo, a former Cross River State commissioner for justice, noted that what was singularly outstanding from this decision is that it has been made clear that under the 1999 Constitution, the president does not have unfettered powers.
Read also: Old naira notes remain valid till December, says Supreme Court
“Effectively, the practice of setting policy on significant national issues merely by taking memoranda to either the Federal Executive Council or, as in this case, directly to the president by a single official of the Federal Government, without consultation with key constitutional bodies like the National Economic Council and the National Council of State, has been declared to be not only illegal but also unconstitutional,” he stated.
Similarly, Muda Yusuf, chief executive officer of the Centre for the Promotion of Private Enterprise (CPPE), commended the court’s ruling hoping that President Buhari, the central bank governor and the attorney-general of the federation would comply with this court order in the interest of the rule of law, good order and public interest.
“It is true that the CBN has the right to redesign currency, but it does not have the right to dispossess the citizens of their cash, the choice of the mode of a store of value is a fundamental right of citizens and it has no right to impose that choice on citizens,” he said.
Yusuf added that the ruling was welcome as it protects citizens from a policy that is disruptive, repressive, draconian, punitive, cruel and insensitive, adding that Nigerians deserve an apology from the promoters and proponents of the policy.
Uche Uwaleke, a professor of finance and capital market, at the Nasarawa State University, said the CBN was expected to comply with the ruling, coming from the final court in the land.
He added that the CBN has recorded some achievements in terms of the objectives it set out to achieve. However, the time frame till December 31, 2023, provided an opportunity for the CBN to re-assess the policy and improve on its implementation without causing distortions to the economy.
“Doing so will help revive economic activities and reduce the current difficulties being faced by Nigerians on account of the policy; the reduction in huge cash circulating outside the commercial banks, the surge in electronic transactions, increase in financial inclusion are part of the achievements recorded thus far,” he said.
While the court order comes as a relief to many Nigerians, some are, however, exercising caution in expressing their excitement, with concerns that the CBN may not obey the order as it did with the last order.
Abdullahi Abdulkadir, a Nigerian via his twitter handle – @Abdulkadir, expressed concern about adherence to the ruling.
“Will the CBN governor and presidency adhere to this? Getting this new note isn’t coming easy, I feel like is a lifetime achievement each time I am able to get a few,” he said.
Desmond Nwafor, an entrepreneur said the ruling was just one of the many cases of confusion because a lot of Nigerians with credible sources of income have deposited the old notes, adding that the ruling does not mean that the notes will start circulating which is the current major challenge now.
“This is simply a case of confusion and so after December, will people queue again to deposit the old notes or will it be extended, there is so much uncertainty and confusion in the country, this is like giving medicine after death,” he said.
