Old Naira deadline: CBN didn’t defy Supreme Court ruling, lawyer explains with precedent

The Central Bank of Nigeria (CBN) didn’t contravene the ruling of the Supreme Court on the phasing out of the old Naira notes, a Partner at the law firm, Milestone Partners, Roland Aibangbee, has told Ripples Nigeria.

Recall that this publication had reported that the Supreme Court set aside the February 10, 2023, deadline fixed by the CBN for the old N200, N500 and N1,000 notes to cease being legal tender.

The ruling by the apex court was made in the case filed by Kaduna, Kogi, Zamfara and other states against the Federal Government to stop the CBN from implementing the deadline, as the Naira scarcity was affecting residents of their states.

Following the Supreme Court’s ruling last week Wednesday, the CBN and the Federal Government declared that only N200 will be circulated, excluding the N500 and N1,000 notes.

According to the legal practitioner, what the Supreme Court ruling translates is “restraining the FG from implementing the February 10 deadline is that Nigerians can continue to use the old naira notes as a valid legal tender, as though the deadline by the Central Bank of Nigerian (CBN) was never set.”

However, President Muhammadu Buhari’s nationwide broadcast last week Thursday further complicated the issue, as he said the CBN has been directed to circulate only the N200 notes, while the old N500 and N1,000 should be returned directly to the central bank.

This has led to accusations that the Godwin Emefiele-led CBN and Buhari flouted the ruling of the Supreme Court, which had ordered both parties in the case; states and FG – to maintain the status quo until its judgement on February 22, 2023.

Aibangbee disclosed that CBN not being a party to the suit makes it impossible to accuse the central bank of contempt of court.

The legal counsel said the CBN can only sue or be sued in its corporate name, which was missing in the suit against the Federal Government.

“The CBN cannot possibly be accused of contempt of court in this case and the ensuing scenario. By section 1(1) of the law establishing it (that is the CBN Act), the CBN is a body corporate that can sue and be sued in its corporate name.

“The CBN was not joined as a party in this all important case and an order was made against it in the matter. As a counsel I expected more from the apex court than to make an order against a party who was not before it,” he told Ripples Nigeria.

READ ALSO:‘Subject to certain criteria,’ CBN sheds light on acceptance of old Naira notes after deadline

Citing precedence, the lawyer revealed, “As late as the year 2017, the same Supreme Court held as follows in the case of OYEYEMI & ORS V. OWOEYE & ANOR (2017) LPELR-41903(SC) (PP. 27-28 PARAS. D) that:

“The effect of order(s) made against persons not joined as a party is that such order is a nullity and of no effect. In our view, Counsel to the Appellants was right to have submitted at pages 12 and 13 of his brief of arguments, that where person who ought to be joined to the suit had orders made against them by the trial judge, such proceedings ought to be a nullity, being a denial of the Appellant’s right to fair hearing.”

Ripples Nigeria gathered from the counsel that the Supreme Court should have queried the plaintiffs if the CBN shouldn’t be joined in the suit, considering it was the main character in the issue before the court.

“One would have thought that the Supreme Court would take the initiative of asking the Plaintiffs in that case whether the CBN ought not to have been joined as a party given the fact that positive orders were being sought against it.

“I think I have said enough on this point. But barring the economic implication, and without saying it loud and clear, the CBN cannot be seen to have done anything wrong, legally speaking, if it disobeys the Supreme Court’s order made without it being joined as a party.”

The legal practitioner explained that though the order of the Supreme Court and the later statement issued by the CBN was capable of creating confusion in the polity, Nigerians should not act confused.

He said there are no two orders, as that of the Supreme Court is superior, “CBN merely issued a statement, and such statement cannot graduate to the status of a judicial order.

“The Supreme Court has given an order. If the CBN feels that the order is not binding on it and acts contrary to the order, Nigerians should still activate the legal means of punishing a person (natural or artificial) who disobeys an order of court.”

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