A Senior Advocate of Nigeria, Femi Falana, has sued the Central Bank of Nigeria (CBN) for the \u201cdollarisation of the Nigerian economy.\u201d<\/p>\n
Falana, in the suit marked FHC\/L\/CS\/476\/23, filed at the Federal High Court in Lagos, is asking the court to determine among others \u201cwhether by virtue of Section 16 of the Central Bank Act, the exchange rate of the naira shall be determined, from time to time, by a suitable mechanism devised by the Bank for that purpose?\u201d<\/p>\n
The human rights lawyer claimed that \u201cthe seeming non-performance of the defendant\u2019s statutory obligations culminated in dollarisation of the country\u2019s economy which has, in turn, affected the country\u2019s economy negatively, contrary to the objectives of the defendant as enshrined in Section 2 of CBN Act.\u201d<\/p>\n
Arise Television reports that in a 10-paragraph affidavit in support of the Originating Summons deposed to by one Mr. Ayodele Aribisala, Falana argued that the CBN had allowed many landlords in Lagos, Abuja, Port Harcourt and other cities in Nigeria for which the apex bank was established to serve to collect rents in dollars.<\/p>\n
\u201cThe Defendant has refused to stop the collection of school fees and rents in dollars in Nigeria,\u201d he said.<\/p>\n
The senior lawyer argued that the dollarisation of the Nigerian economy and the failure to address the multiple exchange rates further pushed the naira to its current fluctuating state.<\/p>\n
Falana recalled that in 2015, one dollar was exchanged for N178, but in 2022, it was exchanged for N750.<\/p>\n
He further argued that the multiple exchange rates regime led to the emergence of different exchange rates in the three major segments of the foreign exchange market namely: the official market, the Investors and Exporters window (also known as NAFEX) and the parallel market.<\/p>\n
He said, \u201cthat the failure of the defendant to perform its statutory duties has resulted in the constant devaluation, depreciation and unending plunge of the naira.<\/p>\n
\u201cThat the resultant effect of the abdication of defendant\u2019s statutory duties has also affected the country\u2019s economy and many businesses adversely.\u201d<\/p>\n
In the written address in support of the suit filed on his behalf by Mrs. Funmi Falana, the plaintiff submitted that by allowing the unabated use of dollars in Nigeria to the detriment of the naira, the defendant had failed in its statutory duties to ensure that naira remained the only recognised means of legal tender in Nigeria.<\/p>\n
He noted that the Minister of Finance, Wale Edun, on August 17, 2021, publicly admitted that the multiple exchange rates system had compounded the problem in the Nigeria capital market and further stated that the defendant\u2019s latest policy was directed towards a unified exchange rate.<\/p>\n
Falana said, \u201cThe defendant, having realised that its policies on dual exchange rate system have caused more harm than good, declared the parallel market illegal and a bad determinant for the naira.<\/p>\n
\u201cThe defendant further intimated its plan to eliminate the multiple exchange rate regime and unify the exchange rates and manage the rate in a sustainable manner over a period of 12 months but has failed to do so.<\/p>\n
\u201cThe apparent remiss of the defendant which has impoverished and pauperised many Nigerians must not be further condoned and same ought to be expeditiously addressed in order to save the jittery value of our currency that was once ranked as one of the strongest currencies in the world.<\/p>\n
\u201cTo this end, we humbly submit that by employing unsuitable mechanisms and creating multiple exchange rates in contravention of section 16 of the CBN Act, the defendant has categorically failed to carry out its principal objects which inter alia, are to ensure monetary and price stability\u2026, and promote a sound financial system in Nigeria and we urge your lordship to so hold.<\/p>\n
\u201cConsequently, we urge your lordship to compel the defendant to put an end to the use of dollar as legal tender by enforcing policies and sanctions that will stop the illegal use of dollars as legal tender in Nigeria.\u201d<\/p>\n
The plaintiff, among other reliefs, sought\u201d \u201cA declaration that by virtue of section 16 of the Central Bank Act the legal tender in Nigeria is naira and kobo.<\/p>\n
\u201cA declaration that by the combined effect of sections 15 and 20 (1) of the Central Bank Act, the currency notes issued by the defendant shall be the legal tender in Nigeria.<\/p>\n
\u201cA declaration that by virtue of section 16 of the Central Bank Act the exchange rate of the Naira shall be determined, from time to time, by a suitable mechanism devised by the defendant for that purpose.<\/p>\n
\u201cA declaration that by virtue of section 16 of the Central Bank Act the defendant is not competent to allow multiple exchange rates of the naira vis-a-vis the dollars and other foreign currencies.<\/p>\n
\u201cA declaration that by virtue of section 20 (5) of the Central Bank Act the defendant is under a legal obligation to prosecute any person who refuses to accept the naira as a means of payment in Nigeria.\u201d<\/p>\n
He pleaded with the court to allow the suit to be served out of Lagos State and in the Federal Capital Territory, Abuja.<\/p>\n
A Senior Advocate of Nigeria, Femi Falana, has sued the Central Bank of Nigeria (CBN) for the \u201cdollarisation of the Nigerian economy.\u201d Falana, in the suit marked FHC\/L\/CS\/476\/23, filed at…<\/p>\n","protected":false},"author":1,"featured_media":93658,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[17],"tags":[],"class_list":["post-110401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-exclusive"],"yoast_head":"\n