Prominent lawyer and human rights activist, Mr. Femi Falana, SAN has dragged the Central Bank of Nigeria (CBN) before the Federal High Court in Abuja requesting for an order to restrain the apex court from subjecting the exchange rate of the naira to market forces.
The CBN is the sole defendant in suit FHC/ABJ/CS/146/16, filed by Mr. Wisdom Elum, a lawyer in Mr. Falana’s firm asking to stop the use of the U.S. dollar as a legal tender in Nigeria as it contravenes Section 20 of the CBN Act.
According to Falana, the CBN had so “dollarised the economy to the detriment of the economy” that the dollar had become a legal tender, with school fees as well as rents now being charged and paid in the foreign currency.
Thus, the Senior Advocate wants the court to determine,
“Whether the monetary policy of the defendant, which allows market forces to fix and determine the exchange rate of the naira is not a violation of Section 16 of the CBN (Establishment) Act 2007 and Section 16 of the Constitution of the Federal Republic of Nigeria, 1999 as amended.”
A supporting affidavit deposed to by Mr. Femi Adedeji, another lawyer in Falana’s law firm reads:
“The devaluation of the currency and dollarisation of the economy have made mockery of the yet-to-be-passed 2016 budget of the Federal Government.
“The monetary policy of the defendant (the CBN) has led to a situation whereby too much naira chase few dollars, thereby making the naira weaker in relation to the dollar and instigating an adverse multiplier effect.
“The monetary policy of the defendant has also led to increasing costs, rapidly rising inflation and interest rates, closure of factories and the attendant high level of unemployment.”
Hip, Hip hulla.somebody is lighting up fire,up the arses of the central bank of Nigeria ( my apologies to your readers for bad languages).i wishes Mr falana many years in future.for more than 30 yrs Nigerians have ben suffering unnecessarily from the hands of the central bank of Nigeria.one of the fuctions of the central banks,is to controls inflation.now Nigeria lack essential facilities.i.e if you uses high interest rates to control inflation/production.it will lead millions of Nigeria living below the breadlineFor many years the c.b.n resist the usuage of direct measures to (1) to controls inflation(2) built a systemic and control production increases (3) not to hurt the economy.
there are more than 4 financial system,which the C.B.N can adapt to have about 500 billion dollar in Nigeria financial system,within one year,and more.norway have more than 56 trillion call it reserve by through their state mutual fundl,they trade in safe financial transction,so do the Bank of England,they do trading in forex trading,of which the central bank of Nigeria was modelled on,they should ask,the bank of England how they do it