Naira crisis: Cash-strapped Nigerians bank on Supreme Court as hearing resumes today
As the Supreme Court today (Wednesday) resumes hearing on the old naira note deadline suit between some state governments and the Federal Government, Nigerians, especially consumer and business groups as well as professional and trade unions are looking up to the apex court for a favourable judgment that they expect will ameliorate their suffering.
The Supreme Court had on February 8 restrained the Federal Government from implementing the February 10 deadline for swapping the old naira notes with new ones, but the Central Bank of Nigeria refused to shift the deadline.
The injunction was sequel to a suit filed by Zamfara, Kogi and Kaduna state governments against the Attorney-General of the Federation on February 3.
Other states including Lagos, Ondo, Ekiti, Kano, Sokoto, Ogun and Cross River have also joined the suit as co-plaintiffs.
But the crisis between the governors and the President, Major General Muhammadu Buhari (retd.) over the naira redesign initiative worsened last Thursday when the President in his nationwide broadcast ignored the apex court order by extending the validity of the old N200 notes while insisting that the old N500 and N1,000 remained illegal.
Buhari further stated that the old N200 note would be legal tender till April 10, 2023, while urging Nigerians to deposit their old N500 and 1000 notes with the central bank.
Insisting on the order of the apex court, the governments of Kaduna, Ogun and Sokoto states, however, said the people in their states should continue to use the old naira notes as legal tender until the Supreme Court delivered its final pronouncement on the case pending before it.
On Sunday, the All Progressives Congress National Chairman, Senator Abdullahi Adamu and the National Working Committee of the party met with 12 APC governors and in a communique after the meeting admonished the CBN and the Attorney-General of the Federation, Abubakar Malami, SAN, to comply with the order of the apex court.
The PUNCH reports that no fewer than 13 persons have died in protests provoked by the shortage of new naira notes across the country.
Also, at least 12 states have witnessed protests as a result of the policy.
Speaking with The PUNCH on Tuesday, the National President of the National Union of Banks, Insurance and Financial Institution Employees, Anthony Abakpa, expressed the hope that the apex court would give a ruling that would stop the incessant attacks on bank employees.
He said, “There is nothing much; the fact remains that the Supreme Court judgment supersedes every other power in Nigeria. Its supremacy and of course its verdict must be upheld.
“So, whatever it is, we know for sure and we are optimistic that the Supreme Court will not allow the masses to continue to suffer the way we have been suffering. All of us are suffering and facing it, so I don’t think it will rule against the masses and that is our own expectation as a union and as an organised labour union. We are sure the Supreme Court justices cannot compromise because they know their onions.”
Also speaking, bank customers, under the aegis of the Bank Customers Association of Nigeria, said they hoped the Supreme Court would give a ruling that would get the Federal Government to obey its earlier judgment, thereby saving Nigerians from the naira mess.
Bank customers
The President of the Bank Customers Association of Nigeria, Dr Uju Ogubunka, said, “Well, I believe that the court should uphold its earlier ruling, if not, we will just mess up the supremacy of the judiciary. When you have the Supreme Court take a decision and we turn around and disobey it or obey it partially, that’s not the best for the nation and it portends an ill wind no one can stop when it starts blowing.
“If I had my way, I believe that the Supreme Court will uphold its decision and from there we can move forward. Except, there is anything of national interest that will make it impossible for them to do so.”
Also speaking, the Chairman of the Nigerian Association of Small and Medium Enterprises, Lagos State Chapter, Dr Adams Adebayo, said, “The old N500 and N1000 have lost their legitimacy in the eyes of the public such that even courts are rejecting them.
“Lawyers and litigants were yesterday prevented from filing court processes at the Lagos High Courts as officials insisted they would only accept new naira notes.
“Our expectations as small business owners are that the Supreme Court should reverse the status quo and allow both old and new (notes) to be accepted as legal tender to reduce the tension and save the lives of the innocent citizens.”
On his part, the Director-General of the Nigerian-American Chamber of Commerce, Gbenga Adebija, submitted that it was important for the apex court to consider the facts of the case and deliver an unbiased verdict that would benefit Nigerians.
According to him, it is required that all the parties in the case pursue their prayers to the court based on the interest of the general public and not partisan or sentimental interests.
He said, “Our hope is that all the parties concerned have the interest of the country at heart. We hope that the court looks at the matter very well and delivers its judgment without bias; that they will do what is right and what will be for the good of Nigeria and Nigerians.”
Speaking on their expectations, the spokesperson for the Nigerian Union of Pensioners, Bunmi Ogunkolade, lamented that pensioners were suffering from the naira redesign policy and urged the Supreme Court to ensure that the CBN make the new notes available to Nigerians.
He said the pensioners did not have access to cash, adding that it had made life and business challenging for them.
Ogunkolade stated, “Most of them are of old age and they need cash, physical cash to go about their businesses and lives. And the cash is not there. Our expectation is normal, what every other Nigerian is expecting. If they can’t give us the new notes, they should give us the old ones.’’
On its part, the National Association of Nigerian Students asked the Supreme Court to question the CBN governor on his disobedience to its order.
Speaking with our correspondent on Tuesday, the Coordinator, NANS zone D, Emmanuel Olatunji, accused Emefiele of deliberately violating the court’s order in order to disrupt the election.
The students’ leader noted, “What is Godwin Emefiele up to? What exactly is his intention? Is he happy seeing our people suffer or is he just more interested in using his actions to disrupt the coming election?
“The people are protesting, youths are storming banks to wreak havoc since they do not understand the reality of what is going on in the country. These activities can lead to a very serious problem for the country as the destruction of lives and properties would be the order of the day.’’
However, as Nigerians waited with bated breath for the verdict of the Supreme Court justices, the Kaduna, Kogi and Zamfara state governments have filed a contempt proceeding against the AGF and the CBN Governor, Godwin Emefiele, for failing to comply with the February 8 order of the Supreme Court suspending the ban on the old N200, N500 and N1000 notes.
Contempt proceeding
A fresh proceeding was filed before the Supreme Court on Tuesday.
During the last sitting on the matter on February 15, the lawyer to the plaintiffs, Abdulhakeem Mustapha, accused the Federal Government and its agencies of flouting the court order.
Mustapha said his clients had since filed a notice of non-compliance with the order of the court and demanded that the apex court take action against the AGF to protect the dignity of the court.
“That order has been flouted by the government. We are talking of executive lawlessness here. We have filed an affidavit to that effect”, Mustapha said.
The forms filed by the team of lawyers representing the three states are now part of the applications awaiting the Supreme Court’s consideration as proceedings resume on Wednesday.
In the fresh documents filed before the Supreme Court, the three states which are the original plaintiffs in the suit cautioned the AGF and Emefiele about the consequences of their continued failure to comply with the apex court’s order made on February 8.
According to findings, two sets of Form 48-one directed at the AGF and the other at Emefiele were issued by the Chief Registrar of the apex court following an application by the team of lawyers representing the three states.
The issuance of Form 48 on a party believed to have flouted an order of the court is the first stage in the commencement of contempt proceedings.
The form which provides notice of the consequence of flouting the court order could be followed with the issuance of Form 49 if the contemnor does not repent.
Form 48 dated February 15 read: “Take notice that unless you obey the direction contained in the attached Order of the Supreme Court of Nigeria delivered on the 8th day of February 2023, you will be guilty of contempt of Court and will be liable to be committed to prison.”
Against this background, the Ondo State Government has said it is waiting for the judgment of the Supreme Court on the pending suit.
The state Attorney-General and Commissioner for Justice, Mr Charles Titiloye, said, “The Supreme Court would sit on all the cases tomorrow ( Wednesday) and pronounce its judgment. The Supreme Court has the power to give judgment and give details later.”
Meanwhile, indications emerged on Tuesday that banks can collect the old notes till April 10.
Though the CBN recently threw depositors into confusion as it gave conflicting orders on the deposit of old N1,000 and N500 notes, a senior bank official confirmed to The PUNCH that the apex bank had issued a clear directive on the issue.
Last week, a bank worker gave an anonymous tip to one of our correspondents that deposit money banks had been directed to receive the old N500 and N1,000 notes from depositors.
The PUNCH later relied on this official’s remarks to publish a story to that effect.
A few hours after its official spoke to The PUNCH, the CBN issued a statement refuting the official’s remarks, while also seeking to blame the media for the fiasco.
But Fidelity Bank in a memo to its customers on Tuesday provided an update on the acceptance of the old naira notes.
From the memo, The PUNCH learnt that the old N500 and N1,000 notes could be redeemed till April 10, 2023.
The memo read, “The old N200 note will remain legal tender till April 10, 2023. The old N500 and N1,000 notes can be deposited at any of our branches nationwide before April 10, 2023. The maximum deposit is N500,000 and shall be tied to the account holder’s BVN.
“Customers intending to deposit N500,000 and below must log on to crs.cbn.gov.ng to register on the CBN portal. Upon successful completion of the registration process, a code will be generated and must be presented to our branch when depositing the old notes.
“Customers that want to deposit above N500,000 in the old N500 and N1000 notes will be required to visit the nearest CBN office.”
Efforts to contact the CBN’s Director of Corporate Communications, Osita Nwanisobi, for comments were unsuccessful as he ignored our correspondent calls and WhatsApp messages.
Reps meeting
Meanwhile, more facts have emerged on what transpired at the meeting between the President and a delegation from the House of Representatives over the crisis caused by the naira redesign.
The Majority Leader of the House, Alhassan Ado-Doguwa, had last Thursday led members of the House Ad Hoc Committee on the Central Bank of Nigeria’s Cashless Policy and Extend the Timeframe of the Currency Swap to meet with Buhari at the Presidential Villa.
The committee members met Buhari hours after he delivered his national broadcast on the crisis.
Sources at the meeting disclosed to our correspondent that Buhari insisted on going ahead with the implementation of the CBN policy despite pleas by the lawmakers.
A member of the House, who spoke on the condition of anonymity, said the delegation was forced to agree with the President after failing to convince him otherwise.
“It was a summons (by the Presidency) and Doguwa was bold to tell Buhari what should happen, but the President was adamant; he would not listen to us,” the lawmaker said.
When asked why the committee went to beg the executive instead of reporting its findings on the CBN policy to the House, a committee member, Nicholas Ossai, explained that the meeting with the President was a fact-finding mission.
“Can the committee report back to the House when the House is not in session? There will be continuous consultation. (Facts gathered from) those consultations would be part of the final report of the committee when the House resumes,” Ossai stated.
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Indications emerged Tuesday that the House may not reconvene for an emergency session over the naira crisis.
The Senate and the House had earlier adjourned plenary till February 28 to allow members to campaign for and participate in the presidential and National Assembly elections.
Speaker of the House, Femi Gbajabiamila, had said the federal parliament would have no option but to reconvene before the elections if the CBN failed to address the hardships Nigerians were facing due to its currency swap policy.
The PUNCH reports that while the House sits on Tuesday, Wednesday and Thursday, there was no notice to recall members of the House for plenary as of press time on Tuesday.
Also, it was observed that House Ad Hoc Committee on the currency swap has yet to continue its investigative hearings after its meeting with Buhari.
As the hardship over the cash crisis bites harder, the Kaduna Governor, Malam Nasir El-Rufai, has met with security operatives and traditional rulers to assess the security situation in the state as a result of the currency scarcity.
After the meeting which was held at the Sir Kashim Ibrahim Government House, in the state capital, on Tuesday, the governor announced measures to tackle the current hardship experienced by the residents of the state.
According to a statement by the governor’s media aide, Muyiwa Adekeye, the reliefs announced include the provision of free transport services along designated routes in Kaduna, Kafanchan and Zaria, the three biggest cities in the state.
To ensure the success of the measure, the government said it would partner with the transport unions to provide buses and tricycles to this effect.
Meanwhile, El-Rufai, has denied that governors are against the naira redesign because it would prevent them from inducing voters during the forthcoming elections.
The governor who spoke in an interview with BBC Hausa on Monday stressed that currency redesign was not enough to stop voter inducements.
Naira-dollar fluctuates
Meanwhile, the naira-dollar exchange rate has begun to record sharp volatility at the parallel market as the Saturday presidential poll inches closer.
Finding by The PUNCH on Tuesday showed that the exchange rate that went for between N740/dollar and N745/dollar on Friday went further to N745/N750/dollar on Monday.
On Tuesday, the greenback was sold for between N750 and N755.
Bureau De Change operators in Lagos, Abuja told our correspondent there was panic at the parallel market due to the sharp fluctuation of the exchange rate.
The currency agents said in previous weeks, some operators were willing to sell the United States dollar as low as N650 provided intending buyers were ready to pay new notes and in cash.
However, operators said due to lack of new naira notes, the offers did not stay long in the market.
Speaking on the development, the President, Association of Bureau De Change Operators, Mr Aminu Gwadabe, said there was strange development at the parallel markets in the past weeks which continued into this week.
He said, “There have been upward and downward movements of the naira-dollar exchange rate. There is really some kind of activities and behaviour in the market. This morning, there was a glut. As we speak now, the market is completely dried up. Basic Economics speaks about the law and demand. This applies to the dollar and naira.
A few weeks ago, there were operators who want to sell the dollar for N650 provided they could get naira cash. However, they did not get it. Now, the situation has changed, people are buying dollars and mopping it up.
Due to the increase in demand, the rate is coming up. At this period, there is no place the demand cannot come from. I foresee further spike as we approach Saturday elections.”
A BDC operator at Lagos airport, Mustafa Yahyah, said the market was reacting to the coming Saturday poll.
Another currency agent at Gtbank in Ojodu, Lagos Jubril Ahmed, said the parallel market was witnessing panic due to the elections.
