NEWSMAX news at its best
The Supreme Court of Nigeria will today resume hearing in the suit brought by three states, against the federal government over the controversial currency swap policy of the Central Bank of Nigeria.
A seven-man panel of the apex court, last week Wednesday, granted an interim injunction as requested by the suing states of Kogi, Kaduna and Zamfara, “restraining the federal government through the Central Bank of Nigeria (CBN) or the commercial banks from suspending or determining or ending on 10 February, the time frame with which the now-older version of the 200, 500 and 1000 denominations of the naira may no,longer be legal tender, pending the hearing and determination of their motion on notice for interlocutory injunction.”
The court is sitting as a court of first instance on the matter.
While the Federal Government was blocked from participating in the hearing of the exparte application filed at the Supreme Court on 3 February and heard five days later, the resumed hearing today is expected to feature the objection of the central authority as the main issue in the proceedings.
The respondent, Mr. Abubakar Malami, SAN, amid alleged move by the CBN to ignore the interim order because it was not joined as a party, had promised that the order, despite the reservation of the federal government, would be obeyed.
He also disclosed that his preliminary objection would be challenging the jurisdiction of the apex court to hear the suit, without CBN as a necessary party.
He said, “An interim order was granted by the Supreme Court and that order was to lapse on Wednesday (February 15) and incidentally, that was the day the court fixed for hearing of the motion.
“With the position in mind, we have taken steps to file our objection challenging the jurisdiction of the court to entertain the matter. Jurisdiction on the ground that when you talk of monetary policy, Central Bank is an indispensable and necessary party in the matter.”
As the ultimate appellate court, Supreme Court can only act as a court of first instance in disputes involving federal and state governments. Once an agent of the federal government is involved as a party, such matters are constitutionally meant for the federal high court, as the court of first instance.
Today’s hearing is expected to generate a lot of fireworks, considering the intention of the Attorney General to have the interim injunction lifted. He is however expected to run into a headwind, considering the posture of the CBN, regarding the order on the 10 February deadline.
The apex bank, since the order was issued, has postured in defiance, with a leaked internal legal opinion suggesting that the bank, alongside its operations, was not captured in the interim order and therefore, not bound by it.
Less than 24 hours to the proceedings, the governor of the bank, Mr. Godwin Emefiele on Tuesday, took a stand on the order, saying it had not affected the initial deadline set by the bank.
This position effectively translates to the apex court order not being obeyed.
Emiefiele, in Abuja, during a meeting with members of the diplomatic corps, said the 10 February deadline to phase out the old N1,000, N500, and N200 notes remained unchanged.
He acknowledged the inconveniences caused by the naira redesign policy, including hoarding and elevated agitation, but urged Nigerians, particularly those in positions of authority, not to overstate it, to avoid spreading fear. The CBN boss also maintained that the benefits are significant and will eventually lead to a cashless policy while acknowledging that the transition to using the new naira notes may be difficult.
Leading rights lawyer, Mr. Femi Falana, SAN, wanted the apex court to take judicial notice of the position of the apex bank when hearing commences today.
If a party disobeys an order of a court, the usual practice is for the opposing side to demand that the disobeying party isn’t heard by the court, except and until it complies with the subsisting order.
Supreme Court has also been at the forefront of renewed campaign to have governments at all levels, comply with orders of courts, though the current administration of President Muhammadu Buhari, has a record of not complying with court orders, especially those against it.
Falana is however insisting that regardless of the misgivings of the federal authorities, once the Supreme Court has spoken, there must be compliance.