Interim Injunction restraining the FG, through the CBN On Naira Swap Deadline

Interim Injunction restraining the FG, through the CBN On Naira Swap Deadline

In response to enquiries from our correspondent, Dr Jibrin Umar Gwandu, who is Special Adviser to the Attorney General of the Federation (AGF) and Minister of Justice, Mr Abubakar Malami, SAN, stated, “The federal government is studying the ruling and will take necessary steps within the context of the rule of law before the 15th day of February 2023, when the matter is adjourned for hearing.”

AG-Malami Studying The Apex Court Ruling Stopping Enforcement of Naira Swap Deadline

The comment came as the Governor of CBN, Mr Godwin Emefiele, again met with President Muhammadu Buhari yesterday, at the State House, Abuja, on the currency issue. It was the second of such meetings in two days. Buhari had on Tuesday met with Emefiele, alongside the Chairman of Nigeria Governors Forum (NGF), Aminu Tambuwal; the Governor of Kebbi State and Chairman of Progressive Governors Forum, Atiku Bagudu; and the Chairman of Economic and Financial Crimes Commission (EFCC), Abdulrasheed Bawa.

The CBN governor was sighted around the president’s office a few hours after the Supreme Court gave a temporary injunction restraining the federal government from banning the use of the old naira notes from tomorrow. However, it was imprecise what Emefiele’s mission was at the seat of government, as he refused to speak with correspondents during the visit.

AG-Malami Studying The Apex Court Ruling Stopping Enforcement of Naira Swap Deadline

However, diverse reactions persisted in trailing Wednesday’s decision of the Supreme Court to temporarily suspend the move to phase out the use of old banknotes from circulation from February 10. While some senior lawyers backed the apex court’s decision, civil society organisations (CSOs) faulted the court’s verdict.

AG-Malami Studying The Apex Court Ruling Stopping Enforcement of Naira Swap Deadline

Following the verdict, the presidential candidate of the All Progressives Congress (APC), Bola Tinubu, and the Governor of Rivers State, Nyesom Wike, hailed the state governors for standing on the side of the Nigerian people over the cash swap policy. They expressed fulfilment with the court ruling.

On its part, the Peoples Democratic Party (PDP) alleged new moves by the presidential campaign council (PCC) of APC to derail the 2023 general election and put the country’s democracy in jeopardy. It also alleged that the ruling party had intercepted and stored the new naira notes for vote-buying.

AG-Malami Studying The Apex Court Ruling Stopping Enforcement of Naira Swap Deadline

But the Labour Party called on Nigerians to resist any attempt by the APC governors to arm-twist the CBN governor into backpedalling on the deadline for the cash swap.

However, the International Monetary Fund (IMF) and the World Bank urged the CBN and the federal government to further extend the deadline.

The Supreme Court Ruling

A seven-member panel led by Justice John Okoro halted the move by the federal government to ban the old banknotes in a ruling on an ex parte application brought by three northern states of Kaduna, Kogi and Zamfara.

The three states had explicitly applied for an order of interim Injunction restraining “the federal government through the CBN or the commercial banks from suspending or determining or ending on February 10, 2023, the time frame with which the now older version of the 200, 500 and 1,000 denomination of the naira may no longer be legal tender pending the hearing and determination of their motion on notice for interlocutory injunction.”

AG-Malami Studying The Apex Court Ruling Stopping Enforcement of Naira Swap Deadline

Moving the application Wednesday, counsel to the applicants, Mr A. I. Mustapha, urged the apex court to grant the application in the interest of justice and the well-being of Nigerians. He stated that the government’s policy had led to an “excruciating situation that is almost leading to anarchy in the land.”

While he referred to CBN statistics that put the number of people without bank accounts at over 60 per cent, Mustapha lamented that the few Nigerians with bank accounts could not even access their money from the banks as a result of the policy.

The senior lawyer further argued that unless the Supreme Court intervened, the situation might lead to anarchy because most banks were already closing operations.

AG-Malami Studying The Apex Court Ruling Stopping Enforcement of Naira Swap Deadline

Mustapha further argued that the Supreme Court was not only the highest court in the land but the final court and, as such, had the jurisdiction to entertain any issue, including that which affects the well-being of Nigerians. Accordingly, he urged the court to grant the application and restrain the federal government from ending the use of the old naira notes from February 10, 2023, pending the hearing and determination of the main suit.

The Verdict

Ruling on the motion, Okoro held that after careful consideration of the motion ex parte, “This application is granted as prayed. An order of Interim Injunction restraining the federal government through the CBN or the commercial banks from suspending or determining or ending on February 10, 2023, the time frame with which the now older version of the N200, N500 and N1,000 denomination of the naira may no longer be legal tender pending the hearing and determination of their motion on notice for interlocutory Injunction.”

The court adjourned to February 15 for the hearing of the main suit.

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