Supreme Court Chides FG For Disobeying Its Orders

By Gideon Njoku

The Supreme Court of Nigeria stopped short of dismissing the Federal Government as lawless, when it gave judgement in the Naira Swap suit.

Delivering the judgement in which  ordered that both the old and new Naira notes be used side by side as legal tenders, the Apex Court  rebuked the FG: “The disobedience of the orders of the Court is a sign of the failure of rule of law.”

It also said that “the defendants (FG), ought not to have been heard when it refused to obey the orders of this Honourable Court.”

Insisting that the suit instituted by the Governors has merit, the SC noted:

• The demonetisation policy is inconsistent with the CBN Act .
• That the President cannot make a unilateral policy without carrying the Plaintiffs along.
• In issuing the policy, the President is under an obligation to carry the National Council of States along.
• The policy has impeded the functions of State Governments.
• The directive of the President is illegal
• Old version of the Naira notes shall continue to be legal tender with the new Naira notes until 23rd December 2023.

The CBN had redesigned the Naira in November 2022, and gave January 31, 2022, as the deadline for the use of the old Naira notes of N1000, N500 and N200 denominations.

When all appeals to the CBN to extend the deadline failed, the three Governors of Kaduna, Zamfara and Kogi States went to the SC to challenge the FG and the CBN. Ruling in an exparte motion, the SC allowed the old and new Naira notes to be used side by side till the next adjournment. But it was an order the FG and CBN refused to obey.

But put under pressure over the unprecedented suffering of the people over the scarcity of both new and old notes, President Buhari gave a ten-day grace while the case was still in Court.

Once the grace period was over, the CBN declared the  old Naira notes illegal tender. Riots broke out as people were dying of hunger. Buhari was forced to reapprove the old N200 notes as legal tender till April.

But on Friday, March 3, 2023, the SC gave judgement in favour of the Governors and extended the use of the old notes till December 23, 2023.