…Legal luminaries describe Buhari’s Stance On Old Notes Validity As Contempt of Court, Executive Rascality
Against the backdrop of the hardships Nigerians are facing occasioned by the implementation of the Naira Redesign Policy, President Muhammadu Buhari has supported the Central Bank of Nigeria’s (CBN) position on why the policy remains sacrosanct.
Although the president, in his early morning broadcast on Thursday, partly reversed CBN’s pronouncement that banned all old Naira bills including N200, N500 and N1,000 notes by directing that the old N200 Notes should coexist with the new naira series till April 10 while seizing the occasion to reiterate the importance of the policy.
Buhari acknowledged the harrowing experience Nigerians have had to deal with in exchanging the old notes for the new Naira series but made it known that the policy was aimed at boosting the economy and tightening loopholes for money laundering.
In his address, the president emphasised that it has become important to stay on course with the policy in order to, “restore the statutory ability of the CBN to keep a firm control over 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.
“Economic growth projections make it imperative for government to aim at expanding financial inclusion in the country by reducing the number of the unbanked population.
“Given the prevailing security situation across the country, which keeps improving, it also becomes compelling for government to deepen its continuing support for security agencies to successfully combat banditry and ransom-taking in Nigeria.”
Speaking further, Buhari noted that since the implementation of the policy, N2.1 trillion out of the previously held bank notes have returned to the banking system.
He expressed his optimism that by remaining uncompromising, there would be “strengthening of our macroeconomic parameters, reduction of broad money supply leading to a deceleration of the velocity of money in the economy which should result in less pressures on domestic prices.
“Lowering of Inflation as a result of the accompanying decline in money supply that will slow the pace of inflation.
“Collapse of Illegal Economic Activities which would help to stem corruption and acquisition of money through illegal ways, exchange Rate stability.
“Availability of Easy Loans and lowering of interest rates; and greater visibility and transparency of our financial actions translating to efficient enforcement of our anti-money laundering legislations.
He added that the initial impediment encountered, the evaluation and feedback mechanism put in place have revealed that the policy has been a success as he urged Nigerians to sustain their hopes in his administration and understanding till the nation overcome the difficult transient phase.
Theliberationnews observed that Buhari’s order goes against the interim injunction of the supreme court which pronounced that the old notes remain legal tender till it delivers its judgement on Wednesday, 22nd February 2023 in a suit brought before it by Kaduna, Kogi and Zamfara states against the federal government on the subject matter.
According to activist-lawyer Ebun-Olu Adegboruwa, SAN, Buhari’s order is a sheer affront and disregard for the Supreme Court.
Adegboruwa said by purporting to vary the apex court’s order that all the old notes should continue to be legal tender, the President committed “executive rascality.”
The Senior Advocate of Nigeria slammed Buhari for attempting to “overrule the Supreme Court of Nigeria.”
Faulting him, Adegboruwa said: “The President cannot overrule the Supreme Court of Nigeria. There is separation of powers in a democracy.
“Under section 235 of the 1999 Constitution, the Supreme Court is the final authority in legal pronouncements in Nigeria.
“Under section 287(1) of the Constitution, the President is statutorily obliged to obey, enforce and give effect to the decision of the Supreme Court.”
Section 287(1) of the 1999 Constitution reads: “(1) The decisions of the Supreme court shall be enforced in any part of the Federation by all authorities and persons, and by courts with subordinate jurisdiction to that of the Supreme Court.”
Adegboruwa added that the president’s national address “is sad for our democracy. Since he already admitted that the matter is subjudice, the President should not have proceeded to vary the order of the Supreme Court.
“The President and indeed the executive should not give the impression that citizens can brazenly disregard lawful orders of any court, as that will only encourage anarchy and lawlessness.
“It amounts to executive rascality and brazen disregard and contempt of the Supreme Court, for the President to separate the denomination of the old notes for legality. It is not open to the President to choose which portion of the order of the Supreme Court that will be obeyed.”
Adegboruwa went on to advise him to retrace his steps.
“The President should reverse his directive and add the N500 and N1000 old notes, failing which the Supreme Court should overrule the directive of the President on February 22 when the case comes up,” he added
On his part, another legal practitioner, Barrister Sam Ekubo condemned Buhari for his pronouncement noting that the President put himself above the law.
He urged Buhari to review his decision and wait on the apex court to give its verdict.
