Some state governments have challenged President Muhammadu Buhari’s decision to stick with the deadline for the naira swap policy, which he stated in yesterday’s national broadcast.
Despite the Supreme Court order that old notes should remain legal tender till next Wednesday, President Buhari said yesterday that N500 and N1,000 are no longer legal tender in the country.
This is even as he approved the continued use of the old N200 as legal tender till April 10.
The president disclosed this yesterday morning during an address to Nigerians.
Kaduna, Kogi, Zamfara, Ekiti, and Kano states had taken the federal government to court over the scarcity of the new naira notes which was causing untold hardship to their citizens.
The Supreme Court had said all parties should maintain the status quo till next Wednesday when it will hear the suit.
However, with the pronouncement yesterday morning, the president seemingly overruled the Supreme Court’s decision.
Particularly, Buhari sympathised with Nigerians over the difficulties being experienced over new monetary policies aimed at boosting the economy and tightening the loopholes associated with money laundering.
He further explained that it was to also sustain the gains of his administration in the fight against terrorism and insecurity which has, undoubtedly, been impacted by several internal and external factors.
Part of his speech read: “Fellow citizens, while I seek your understanding and patience during this transient phase of implementation, I feel obliged to avail you of a few critical points underpinning the policy decision. These include:
“The need to restore the statutory ability of the CBN to keep a firm control over the money in circulation. In 2015 when this administration commenced its first term, Currency-in-Circulation was only N1.4 trillion.
“The proportion of currency outside banks grew from 78%in 2015 to 85% in 2022. As of October 2022, therefore, currency in circulation had risen to N3.23 trillion; out of which only N500 billion was within the Banking System while N2.7 trillion remained permanently outside the system; thereby distorting the financial policy and efficient management of inflation;
“The huge volume of Bank Notes outside the banking system has proven to be practically unavailable for economic activities and by implication, retard the attainment of potential economic growth.”
Notwithstanding the initial setbacks experienced, Buhari said the evaluation and feedback mechanism set up has revealed that gains have emerged from the policy initiative.
According to him,” I have been reliably informed that since the commencement of this program, about N2.1 trillion out of the banknotes previously held outside the banking system, had been successfully retrieved. This represents about 80% of such funds.”
Buhari further said on the 25th of February, 2023 the nation would be electing a new President and National Assembly members.
According to him, he is aware that this new monetary policy has also contributed immensely to the minimisation of the influence of money in politics, a positive departure from the past and a bold legacy step by this administration towards laying a strong foundation for free and fair elections.
States to Challenge President’s Decision
But one of the states that took the federal government to the Supreme Court, the Kogi State government said it would will await the decision of the apex court over the suit that was instituted by some state governors, including the governor of Kogi state, Yahaya Bello, and his Kaduna state counterpart, Nasir El Rufai, among others.
While reacting to Buhari’s decision to overrule the Supreme Court order by extending the acceptance of old naira notes to N200 till April, the Kogi state commissioner for Information, Kingsley Fanwo, assured Nigerians that the pronouncement of the president will not stop them from waiting for the Supreme Court’s verdict.
Fanwo said, “Yes, we are aware that the president has extended the acceptance of the old N200 notes but that has not answered our prayers at the apex court. We will wait to hear the determination of the Supreme Court of Nigeria.
The Ekiti state government said that plans are on to review the situation.
The state government had last Friday joined other states of the federation in the suit instituted against the federal government on the implementation of the new Naira notes policy.
Speaking with the LEADERSHIP Friday in Ado Ekiti, Chief Press Secretary to the governor, Mr Yinka Oyebode, said the government will soon decide on the next line of action.
Oyebode said, ” The attorneys-general actually went to the Supreme Court on behalf of their states.Since it is a joint suit, they will be meeting with a view to advise their principals on the next line of action. Definitely, they have to review the situation and then get back to their principals, since it is not just one attorney general of a state that did it; so many of them are joined in the suit.
“More have joined now and so they have to meet again and then review the situation and then advise appropriately,” he said.
Amid the latest pronouncement by President Muhammadu Buhari on new Naira redesign, Lagos State government yesterday insisted that the rejection of the old notes as captured in the president’s address is contrary to the Supreme Court’s stand.
The Lagos State Attorney-General and Commissioner for Justice, Mr. Moyosore Onigbanjo (SAN) who stated this when he appeared on a TVC Business Show, added that petrol stations, banks and others who reject the old notes could be prosecuted.
Pointing to the recent Supreme Court ruling, he noted that though President Buhari had enormous powers, he cannot repeal the order of the Supreme Court or any other court in the country.
According to him, the president’s stance is contrary to the Supreme Court’s position that the old and new notes should co-exist until the substantive matter, which will be heard on February 22, is heard.
The senior advocate decried the lingering naira scarcity in the land and the high charges by Point-of-Sale operators that have fostered untold hardship on Nigerians.
He noted that people who are hungry and have their means of livelihood eroded cannot care about any macro-economic policy or its short or long-term gain.
The Attorney-General said: “There is a contract between a customer and a bank that says when you bring your money to us you can have it back on demand. Any bank that refuses to give the money on demand has violated the terms and conditions of that contract and can be sued. I will advise Lagosians who have experienced suffering and injury as a result of the situation to press charges.
According to the Commissioner, it is ridiculous that Nigerians are buying their own money, adding that “even the producers of goods and services are losing money due to the scarcity of new notes to purchase their products easily.”
In Niger State, the government may not discontinue the suit based on President Muhammadu Buhari’s pronouncements.
Attempt to get a reaction from the state Attorney General and commissioner of Justice Nassara Dan-Mallam proved abortive but a senior officer in the Ministry of Justice who preferred anonymity said that the government will not rescind in the legal pursuit.
Meanwhile, LEADERSHIP Friday observed that most supermarkets are rejecting the old notes despite the governor’s directive to them not to reject the old notes.
It was however observed that make-shift shops were accepting the old notes leveraging on the window to deposit the money through the Central Bank of Nigeria.
It was also observed that long queues are building up for those who want to deposit the old notes through the CBN.
Speaking to LEADERSHIP Friday, a top administration official in the office of the chief press secretary to the governor said the government may not withdraw from the suit.
“What will the government achieve by withdrawing from the suit if the aim of joining the petitioners has not been achieved?” asked the official.
The official, who pleaded not to be mentioned in print, added that In his considered opinion the government would continue with the suit “until the needful is done”.
“The needful is to either extend the period for the other denominations or allow both the old and the new to be used simultaneously up till the end of the year,” he added.
Gbajabiamila Chides PMB On Supreme Court Order
Meanwhile, the Speaker of the House of Representatives Femi Gbajabiamila has condemned the decision of President Muhammadu Buhari on the currency swap policy, describing the president’s action as a flagrant disregard of the Supreme Court order.
The apex court had last week given an order for the old 1,000, 500 and 200 Naira notes to remain legal tender pending the determination of a case brought before it by some state governors.
The apex court had on Wednesday reiterated its order and adjourned the matter to February 22.
However, the executive arm of the Federal Government remained silent on the Supreme Court order.
Yesterday morning, President Buhari, in a nationwide broadcast, said he had instructed the Central Bank of Nigeria (CBN) to reintroduce the old 200 note until April 10, 2023, while the old 1,000 and 500 have stopped being legal tender.
Gbajabiamila, in a statement personally signed by him in Abuja, noted that though the president’s directive was a step in the right direction, the Federal Government could not afford situations that “suggest a wanton disregard for the rule of law.”
“This morning, President Muhammadu Buhari, GCFR, announced that he has authorised the Central Bank of Nigeria (CBN) to reintroduce the old N200 notes into circulation, pending when the Bank can make sufficient amounts of the new currency available. This is a step in the right direction, and I hope it helps curb Nigerians’ suffering.
“However, the decision still falls short of the order of the Supreme Court that the old currencies remain legal tender pending the adjudication of a pending suit brought by state governments on the legality of the policy and its implementation.
“It is not to the benefit of our country for the Federal Government to act in ways that suggest a wanton disregard for the rule of law. It will be better for us to strictly adhere to the court’s order in this matter pending the adjudication of the substantive suit,” he said.
Amidst the hardship Nigerians face, Gbajabiamila urged the citizens to “bear this moment with equanimity.
“For the sake of our country, we must work together to resist actions that escalate tensions and endanger our democracy at this crucial moment of national awakening and rebirth.”
“In all things, let the well-being of our fellow citizens and the survival of our nation be foremost in our hearts and guide all the decisions we make in this historic moment…It is deeply troubling that neither the intervention of the National Council of State nor an order of the Supreme Court is sufficient to cause the Governor of the Central Bank of Nigeria (CBN) to review the decisions that have brought us to this entirely avoidable moment.”
.Also yesterday, a Senior Advocate, Abdul Balogun, said the president cannot, with his broadcast, act as a court of law.
According to him, the President swore to obey the law of the land and therefore must obey orders of court.
Constitutional lawyer, Barrister Julius Ohiza, said the president cannot constitute law to himself.
“His office is a creation of the law and therefore must obey the law. We do things with impunity in this country. Let me say this, I don’t blame the President, I blame his legal advisers who will not tell him the right thing to do in matters like this,” he said.
L.P VP candidate, Datti, flays PMB for bowing to Pressure
For reviewing the deadline on the implementation of the new policy on the nation’s currency notes, vice-presidential candidate of the Labour Party, LP, in the presidential/National Assembly elections holding next Saturday, Senator Yusuf Baba Datti-Ahmed has carpeted President0 Buhari for reviewing the date for the implementation of the new policy on Naira notes.
Speaking to newsmen at the palace of the traditional ruler of Onitsha ancient kingdom, Obi Alfred Nnaemeka Achebe, when he paid him a courtesy visit at Ime-Obi, Onitsha, yesterday, Datti-Ahmed criticised Buhari for altering the earlier deadline on the enforcement of the old and newly designed Naira notes as legal currencies.
He stated that Buhari only announced the adjustment because of “pressures” and insisted that by that action President Buhari had portrayed himself as a “weakling” who lacks courage to remain consistent in implementing policies that concern issues of critical national importance.
The LP vice-presidential hopeful argued that because Buhari caved in to the pressure of those who were against the naira designation and the implementation deadline, he has given such people hope that they can always pressurise him to recant policies of his administration.
Datti-Ahmed, however, stated that the new policy on the Naira notes just like on every other critical issue of the nation under the All Progressives Congress-led federal government, was being” poorly” implemented, saying that it is partly the reason for the failure of governance system in the country.
N800bn Will Be In Circulation By End Of February – Emefiele
Meanwhile, the CBN governor Godwin Emefiele has given assurance that N200 currency notes taken out of circulation will be moved back from today, adding that N800 billion will be in circulation by the end this month.
The president who spoke at the State House when he received briefing from members of the House of Representatives Ad-hoc Committee on Cashless Policy and Naira swap said his speech earlier in the day was comprehensive enough and was adequate as a response to the general outcry about the problems associated with the currency exchange.
According to a statement by presidential spokesman, Garba Shehu, he described the aim of the policy as “very good security-wise” as seen from the lessening of kidnappings and associated corrupt practices. He again accused banks of being a problem.
The CBN governor, as directed by the President, explained that the cashless policy was a global policy. “Nigeria must go cashless. It is a global policy, checking insecurity and fighting corruption,” he said.
He added that senior officers at the CBN had all been sent out, complimented by “super agents,” to take new currencies to unbanked rural populations, expressing optimism that the problems he described as “temporary and passing” will go away in no distant future.
He reported that he had met 15 top banks earlier in the day in an effort to resolve prevailing problems and will do so again later in the evening, assuring that “we are at the end of the problem.”
He also gave the promise that by the end of February, CBN will bring into circulation between N700-N800 billion, well in excess of what is needed to run the economy.
He, however, declared that it is not possible to put back more than N3 trillion if the economy is to be healthy.
Emefiele gave a firm promise that the Bank will not be a problem with elections.
The leader of the parliamentary delegation, Alhassan Ado Doguwa, the House Majority Leader and chairman of the Ad-Hoc Committee, said the meeting with the President was necessitated by the need to bring him up to date on the “problems of implementation and unintended consequences” of the new cash policy.
He affirmed that each member of the House of Representatives was entitled to N70 million cash to pay polling agents and for other election running costs, saying if they had no hard cash, they will be disadvantaged in the exercise.
He said although most of what they wanted to discuss with the president had been taken care of by his broadcast earlier in the day, especially the extension of the validity of the old N200 notes, there is the need to do more to ensure that his directive to the apex bank to make the money available was carried out immediately.
- It’s Bad Precedence, Will Affect 2023 Polls – CSOs
On their part, Civil Society Organisations (CSOs) in Nigeria have accused the President Muhammadu Buhari-led government of setting a bad precedent concerning the naira crisis and its inability to obey the Supreme Court order.
According to the CSOs, even during military regime, the junta obeyed Supreme Court orders but they wondered why the Buhari administration was disobeying the rule of law and the principle of separation of powers.
Reacting to President Muhammadu Buhari’s broadcast asking the CBN to release N200 notes for circulation and stop the N500 and N1000 notes against the Supreme Court order that the apex bank should stay action on the new policy, the CSOs expressed fear that such a decision will affect the 2023 general elections.
The CSOs that spoke to LEADERSHIP Friday are Transition Monitoring Group (TMG), Transparency International (TI), the Civil Society Legislative Advocacy Centre (CISLAC) and Centre for Democracy Development (CDD).
Speaking, the leader of TMG, TI, and CISLAC, Awwal Musa Rafsanjani, said the Buhari administration is making a terrible mistake.
“”The suffering of Nigeria on this policy is unprecedented. Many Nigerians are not treated in the hospitals because there is no cash. Businesses are dying,” Rafsanjani said while describing the naira policy as anti-people.
“This is an anti-people policy. What do they want the ordinary man to do?These big men get their money from the bank officials in their houses. It is the ordinary person that pays for all the bad policies,” Rafsanjani said.
“Many Nigerians will not come out to vote because they don’t have cash. Many may not travel because they don’t have cash. The CSOs have been mobilising Nigerians to see the need to vote and they registered. Now, some of them may not want to vote because of this policy.
“We suffered to mobilise Nigerians for the 2023 general elections and the government has brought this policy to discourage them from voting. We are assuring Nigerians that their vote will count. They should just endure.”
Also, the Centre for Democracy and Development (CDD) has tackled President Buhari for, inmits view, breaching the rule of law and the principle of separation of powers over the naira notes.
CDD director, Idayat Hassan, said the President’s approval of the recirculation of only the old N200 bank notes alongside the redesigned notes till April 10, 2023 is a total disregard to the principle of separation of powers.
“We note, with grave concern, the President’s decision to unfortunately take steps contrary to the position of the Supreme Court on a case concerning the policy; this is sub-judice.
“The apex court ruling on the implementation of the redesign policy is that the old notes remain legal tender until the court gives a final verdict.
“It therefore amounts to a flagrant disobedience and violation of the orders of the highest court in the land for the President to carry on as if the ruling of the Supreme Court is of no effect. CDD is convinced that this is an egregious affront on the rule of law, and the principle of separation of powers.”
Atiku, Kwankwaso Appeal For Calm, Ask Nigerians To Vent Anger At Polls
Presidential candidate of the Peoples Democratic Party (PDP), Atiku Abubakar, and his New Nigeria Peoples Party (NNPP) counterpart, Rabiu Kwankwaso, have urged Nigerians not to resort to violence over the harsh effects of the Naira swap policy.
They, instead, urged Nigerians to use their anger to vote out the All Progressives Congress (APC) which initiated and mismanaged the policy.
The presidential hopefuls were reacting to the violence that erupted in some states on Wednesday over the cash scarcity crisis.
Atiku, in a statement he personally signed, upbraided the APC for refusing to take responsibility for the failings of its naira redesign policy, noting that the ruling party should stop blaming others for its failures.
The former vice president added that the backlash trailing the cash crisis is a culmination of the frustrations of Nigerians arising from APC’s maladministration in the past seven years.
Hevsaid: “It is easy for political expediency for the APC that has brought us to this cul de sac to want to hoodwink Nigerians into believing that the crisis was created by others.
“Truth be told, the crisis that we are witnessing today was conceived, given birth to and nurtured by the ruling APC. Indeed, it was long in coming. We are all witnesses to the myriad of problems that Nigerians have had to endure as a result of the cluelessness of the APC, which came into government with no idea of a policy direction.”
“The current crisis, fallout of the policy of the ruling party’s redesign of the Naira, is only the tipping point. The least the ruling APC can do is to take responsibility for its own policy and the challenges that have followed its implementation, even as we collectively work at addressing those challenges.”
On his part, Kwankwaso who reacted to the situation via his Twitter handle, said, “I’m concerned about reports of tensions and fracas in some parts of the country over the biting effects of the Naira redesign policy.
“While I maintain that the policy is ill-advised and timed, I call on all Nigerians to maintain law and order, and to avoid violent reactions. I also urge all of us to express our collective anger at the polls on February 25.”
El-Rufai Rejects Buhari’s Offer Of Old N200 Notes
By AZA MSUE, Kaduna
On his part, Kaduna State governor, Nasir El-Rufai, has kicked against President Buhari’s decision to limit the legal tender status of old naira notes to N200, describing the president’s action as a total disregard and disobedience of the ruling of the Supreme Court.
El-Rufai in a state broadcast last night urged the people of the state to continue to use the old and new notes of N500 and N1,000 as legal tender as ordered by the Supreme Court of Nigeria.
The governor vowed that no deadline can render the old notes of N500 and N1,000 worthless,.
El-Rufai said:”The address by the President earlier this morning limiting the legal tender status of old notes to only N200 amounts to total disregard and disobedience of the ruling of February 8th which was extended further yesterday by the Supreme Court. The misguided action of the Attorney-General to mislead the President into engaging in this public violation of the order of the highest court of the land shows how desperate the policy architects are to cause national chaos, by showing open contempt for the judiciary”
“The decision to recognise only N200 as legal tender till April that the President announced this morning was offered to the state governments as part of proposals for an out-of-court settlement three days ago. The Federal Government asserted that this was offered because all the ‘old’ N1,000 and N500 notes had been destroyed. We rejected the offer and proved to the officials that not a single higher denomination note had been destroyed. We also believe that circulating N200 only to be inadequate in alleviating the suffering that we see every day. We insisted that all the components of the Supreme Court order should be complied with”
El-Rufai urged the people to be calm and peaceful, and support the lawful means being utilised to solve the problems.
“On behalf of the Kaduna State Government, I wish to assure you that none of you would lose the money you have in old notes. Let no artificial and illegal deadline frighten you. Whether you live in towns, villages or in our isolated rural communities, do not feel stampeded to deposit your old notes in the banks”
“ Hold on to them. Continue to use them as legal tender as ordered by the Supreme Court of Nigeria. No deadline can render them worthless, ever. The law is on your side. The Central Bank of Nigeria Act, 2007 and the Bills of Exchange Act both oblige the CBN to recognise your old notes and give you value in new notes whenever you bring them to the CBN, even in the next 100 years.”
He assured the people of Kaduna that the state government will help them deliver all their old notes to the Kaduna branch of the Central Bank on their behalf immediately after the elections.
“We will also ensure the delivery of your new notes to your various locations without any hardship or expense on your part. We shall save you any panic and the stress of a long journey from your community to the CBN office in our state capital, from March until December 2023 if need be
“For the avoidance of doubt, all the old and new notes shall remain in use as legal tender in Kaduna State until the Supreme Court of Nigeria decides otherwise. I therefore appeal to all residents of Kaduna State to continue to use the old and new notes side by side without any fear. The Kaduna State Government and its agencies shall seal any facility that refuses to accept the old notes as legal tender and prosecute the owners. If need be, we shall take further consequential actions according to the law. “
