Contrary to the Supreme Court’s ruling that the old naira notes remain legal tender until it gives its judgement on a substantive suit, President Muhammadu Buhari directed that only the N200 note should remain valid until April 10, 2023.
The President made this order last Wednesday, a day after the court was supposed to hear the substantive suit brought against the federal government by Kaduna, Kogi and Zamfara states. The action against the federal government sought an interim injunction (temporary order) to stop the full implementation of the February 10 deadline set by the Central Bank of Nigeria (CBN) for the withdrawal of the old N200, N500 and N1000 notes.
The interim order was made pending February 15, when the court would hear the substantive suit. However, the court could not hear the substantive suit as six states, namely Niger, Kano, Ondo, Ekiti, Lagos and Bayelsa, applied to be joined in the suit against the federal government. The court had to consider the applications of the parties asking to be joined in the action. Following this development, it is expected that the interim injunction given by the court will subsist until the court can determine the case. Despite this, Buhari gave the directive that only the N200 old notes should remain valid.
Legal experts have criticised the President’s direction as lacking constitutional support, even though the order was given to “further ease the supply pressures particularly to our citizens”.
Commenting on the President’s directive, Olisa Agbakoba, a senior advocate of Nigeria and former president of the Nigerian Bar Association, said: “The directive given by President Buhari is against the provisions of the law.”
According to Agbakoba, one reason is that the President cannot issue directives on the policies of the central bank. This is because “the central bank is an independent body with the objective of fostering economic policies to the exclusion of any other person or body”, he said.
More so, the directive came after an order had been made by a court of superior record.
The 1999 Constitution of the Federal Republic of Nigeria establishes the Supreme Court. Section 6 (1) and (5)(a) provides that the judicial powers of the federation shall be vested in the courts to which this section relates, being courts established for the federation. Section 6 (6) provides for the powers of the court and states that “the judicial powers shall extend, notwithstanding anything to the contrary in the Constitution, to all inherent powers and sanctions of a court of law”.
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Speaking on this, Kingsley Moghalu, former deputy governor of the CBN and one-time presidential candidate, raised a poser on his Twitter page: “Are we now setting up for a constitutional crisis between the executive and apex judicial arm of government?”
“As badly as the implementation of the currency redesign has gone, the truth is that under Nigeria’s laws, it remains a matter between the CBN and the President in terms of jurisdiction. The Supreme Court had no business here,” Moghalu tweeted.
Michael Adeyemi, a Lagos-based dispute resolution lawyer, has a different view: “Although the Supreme Court may not have been the best place to bring the action brought by the states, a court order is still a court order and the president is bound to comply until the ruling by the court is set aside.”
The Supreme Court is the highest court in Nigeria and the 1999 Constitution gives the court power to make the final decisions in all matters, except with respect to the prerogative of mercy. Section 235 of the Constitution guarantees the finality of determinations in the Supreme Court.
“The powers of the Supreme Court and the finality of its decisions is guaranteed by the 1999 Constitution. The direction by the President is an unconstitutional and obvious disregard of the court’s orders,” said Adeyemi.
