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Home Business News

Naira Redesign: Supreme Court can only interfere in cases involving “Federation” – Moghalu

William Ukpe by William Ukpe
February 16, 2023
in Business News, Currencies
Naira redesign: Supreme Court can only interfere in cases involving “Federation”, different with FG– Moghalu
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Kingsley Moghalu, a former Deputy Governor of the Central Bank, said the Supreme Court can only interfere in cases when there is a dispute between the Federation and a state. 

Moghalu disclosed this on Thursday afternoon in a Twitter thread, amid the ongoing dispute between the Nigerian Government and some states over the CBN’s naira redesign which they say is causing difficulties for residents. 

Moghalu’s point: The former CBN Deputy Governor explained that the Supreme Court’s original jurisdiction is between the “federation” and states. He said: 

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  • “My understanding of the laws of Nigeria is that the Supreme Court of Nigeria has original jurisdiction (jurisdiction to hear a case in the first instance) only when there is a dispute between THE FEDERATION and a state or between a state and another state or an appeal from a Court of Appeal.” 

My understanding of the laws of Nigeria is that @SupremeCourtNg has original jurisdiction (jurisdiction to hear a case in the first instance) only when there is a dispute between THE FEDERATION and a state or between a state and another state or an appeal from a Court of Appeal.

— Kingsley Moghalu OON (@MoghaluKingsley) February 16, 2023

FG versus Federation: He also revealed that there is a difference between the Nigerian Government and the Federation, explaining thus: 

  • “There is a difference between the Nigerian Government and “the Federation. For example, I know from experience supervising the management of Nigeria’s external reserves that the reserves are divided into three portions: one part goes to CBN, another goes to the FGN, and another is reserved for “The Federation”. “ 

What you should know: Recall that Nairametrics reported last week that Nigeria’s Minister for Justice and Attorney-General of the Federation (AGF), Abubakar Malami, asked the Nigerian Supreme Court to dismiss a lawsuit by three states (Kaduna, Zamfara, and Kogi States) over the naira redesign policy of the Central Bank of Nigeria (CBN). 

Malami argued that the plaintiffs have not shown any reasonable cause of action against the defendant citing that The Federal Government of Nigeria is distinct from the Federation or the Federal Republic of Nigeria. 

  •  “The plaintiffs have equally not shown the reasonable cause of action against the defendant. The claims or reliefs are not against the federation, but against the Federal Government and its Agency, the Central Bank of Nigeria. 
  • “The Federal Government of Nigeria is distinct from the Federation or the Federal Republic of Nigeria. The Plaintiffs have no grievance whatsoever against the Federation of Nigeria. This suit has disclosed no dispute that invokes this (Supreme) Court’s original jurisdiction as constitutionally defined.” 

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Tags: CBNNaira RedesignProfessor Kingsley MoghaluSupreme Court of Nigeria
William Ukpe

William Ukpe

For further inquiries about this article contact: Email: william.ukpe@nairametrics.com or outreach@nairametrics.com. Twitter: @_sirwilliam_ @nairametrics.

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