Stakeholders in the energy sector have expressed divergent views on the Supreme Court’s judgment over extension of the use of old Naira notes till Dec. 31.
They expressed their different views on Friday in Lagos.
The Supreme Court on Friday ordered that the old N200, N500, N1,000 notes remain legal tender and be in circulation till Dec. 31.
The apex court also nullified the Federal Government’s Naira Redesign Policy, declaring it as an affront to the 1999 Constitution.
Mr Emmanuel Iheanacho, Chairman, Integrated Oil and Gas Ltd., said the Supreme Court judgement came too soon after the just concluded Presidential and National election, held on Feb. 25.
“It does seem mighty peculiar that the reported Supreme Court ruling has come at a time so soon after the conclusion of the 2023 general elections.
“Might the earlier withdrawal of those monetary tenders from circulation be related to the dynamics of our political practice?
“This is a question that would definitely agitate the minds of keen political observers,” he queried.
Dr Ayodele Oni, Partner, Bloomfield Law Practice, said it was instructive to note that the Supreme Court’s original jurisdiction was clear and unequivocal.
According to him, the dispute is not within the purview of that original jurisdiction.
“To purport to act thereupon, is to perpetuate abuse of court process and to set a bad precedent for the future.
“Now, all policies and actions which are politically unpopular or which affect politicians will be construed to be within the Supreme Court’s original jurisdiction.
“For instance, INEC’s (non) compliance with the IReV had now gone to the apex court, being a dispute between the Federal Government and the dissatisfied politicians, occupying gubernatorial seats, which ordinarily should amount to an abuse of court process,” he said.
He, however, said that the decision could later be used as precedent.
“Notwithstanding the foregoing, in light of the CBN’s mopping of old notes and given that CBN, which was not joined to the suit in the Supreme Court, is not as of now, obliged to obey the Ruling.
“I wonder as to whether this ruling is not in itself nugatory.
“It is instructive to note that today, March 3, in a similarly absurd case, the Supreme Court made the very disturbing finding that CBN is an agent and that they need not be joined before their policy would be brought before the apex court,” Oni noted.
He said, according to the Supreme Court, to join the government would be sufficient.
For Mr Mike Osatuyi, National Operations Controller of the independent Petroleum Marketers Association of (IPMAN) commended the Supreme Court ruling.
Osatuyi, however, assured that lPMAN’s members will abide with court order, but will await Federal Government directive based on Supreme Court orders.
“For we at IPMAN, we are law abiding marketers and we are ready for whatever the directive are.
” The order has just being passed, let’s await government’s reaction before taken any further actions,” he said.
Also, Mr Sina Odugbemi, the National Coordinator of Where ls The Light, said that the Supreme Court did not make mistake by pushing its pronouncement till after the presidential elections
According to Odugbemi, there are different meaning to read into the judgment.
“We had elections last week and we saw the results, again we are going to witness another one next week, and the difference will be clear.
“The role money play in elections will be made very clear. If there is any lesson, this will be number one lesson.
“The whole sufferings brought on the common man is gone down the drain because the policy has failed to fully achieve its goal.
“The failure of the objective also underscore the challenge of changing the old order, ” he said.
The power expert said that the Supreme Court by its pronouncement will no doubt bring relief to millions of Nigerians who had been subjected to untold hardship.
“The real winners in the whole imbroglio are those purported to have stashed monies, the politicians who are bent on buying votes.
The Centre for the Promotion of Private Enterprise (CPPE) has lauded the position of the Supreme Court on the use of old Naira notes as legal tender.
Its founder, Dr Muda Yusuf, said the ruling was in the interest of the ordinary Nigerian.
Yusuf expressed hope that President Muhammadu Buhari, the CBN Governor, Mr Godwin Emefiele and the Attorney General of the Federation, Abubakar Malami, would comply with the court order.
He explained that the judgement would protect the citizens from the disruptive implications of the cash swap policy, apart from being in the interest of the rule of law, good order and public interest.
According to him, while the CBN has the right to redesign currency; it does not have the right to dispossess the citizens of their cash.
“The choice of the mode of store of value is a fundamental right of citizens and the CBN has no right to impose that choice on citizens.
“It is a flagrant violation of the rights of citizens for the CBN to withhold the cash of citizens under the guise of currency redesign as the CBN act does not give the CBN that right.
“The act cannot be superior to the constitution of the country and CBN cannot request the citizens to bring their cash for a swap, only to deprive them access to it.
“A swap presupposes that whatever old notes was received by the banks must be replaced with new ones instantly, otherwise, the period of the swap should be extended until the CBN is in position to do so to minimise disruptions,” he said.
Yusuf said that Nigerians deserved an apology from the promoters of the policy, especially the arbitrary and uninformed mopping up of cash in the economy.
He said that the claim by the CBN that the economy had too much cash outside the banking system has no basis in economic theory, neither can it be supported by empirical evidence.
He furthered said that the contention that the arbitrary mopping up of cash would curb inflation and enhance monetary policy effectiveness equally had no basis, going by available data.
He stressed that the trouble was not with the redesign, but the deliberate and unrestrained mopping up of cash in the economy.
“To date the CBN had mopped up about N2 trillion cash from the economy, thereby paralysing the retail sector, crippling the informal economy, stifling the agricultural value chain, immobilising the transportation sector and disrupting the payment system in the economy.
“Indeed, the bigger threat to monetary policy effectiveness and inflation is the N22 trillion ways and means finances of the CBN.
“The entire exercise was a needless disruption of economic activities, especially among the most vulnerable segments of the economy, unfortunately,” he said.
However, Segun Ajayi-Kadir, Director-General, Manufacturers Association of Nigeria (MAN), noted that while the supreme court order must be respected, the independence of the CBN could be in context.
Ajayi-Kadir said the back and forth on the Naira swap exercise was not without implications on the business community, on manufacturing and the ordinary Nigerian.
He emphasised the need for the CBN to outline means of compliance so as not to further confuse Nigerians.
“The CBN manages monetary policy and so the process of reintroduction, particularly in rural areas, should be addressed as the public does not deserve the back and forth this matter has generated.
“I am not sure the judgement has brought any respite, but has rather exposed the disagreement between the executive and the judiciary arms of government.
“There’s the need for the arms of government and the CBN to meet and come to an understanding with the welfare of the economy and the people as primary particularly during this transition of government period,” he said.
