Supreme Court Judgment An Erosion Of CBN’S Independence– Uwaleke

A professor of Capital Market Studies at the Nasarawa State University, Uche Uwaleke has said that any attempt to scuttle the naira redesign policy by the Supreme Court will amount to the erosion of the independence of the Central Bank of Nigeria.

Uwaleke said this following an interim injunction restraining the CBN, the Federal Government and banks from rejecting the use of the old N1,000, N500 and N200 notes.

Justice Okoro granted an order  of “interim injunction restraining the federal government through the CBN or the commercial banks from suspending or determining or ending on February 10, 2023, the time frame with which the now older version of the 200, 500 and 1,000 denomination of the naira may no longer be legal tender pending the hearing and determination of their motion on notice for interlocutory injunction.”

The professor urged the CBN to adhere to the Court decision, but added that any attempt to strike out the policy by the Court would be detrimental to the mandate of the CBN. 

Uwaleke told THE WHISTLER, “As a law abiding and responsible Institution, I expect the CBN to temporarily halt the implementation of the February 10, deadline for the old 200, 500 and 1000 Naira notes to cease being a legal tender as directed by the Supreme Court pending the determination of a notice in respect of the issue on February 15.

“This period is still within the 7 days grace period lasting till February 17 which the CBN had earlier announced for the old notes to be returned to the CBN.

“All over the world, especially where Central Banks are independent, the conduct of monetary policy is their exclusive preserve- a responsibility not encumbered by either the Executive arm or the Judiciary.

“It would amount to erosion of the apex Bank’s independence with dire consequences for the economy if the Supreme Court eventually gives a ruling next week that permanently cancels the currency redesign policy.”

He advised the CBN to join hands with stakeholders to fine-tune the policy in view of its many laudable objectives.

“It now behoves the CBN to assemble a good legal team to argue its case on the strength of the CBN Act of 2007,” he added.