Human rights lawyer Femi Falana, SAN, has vowed to sue the the Central Bank of Nigeria for floating of the naira.
Stating that the floating is illegal, Falana disclosed that the decision will be challenged in court.
Speaking on Channels Television’s Sunrise Daily, on Friday, August 18, Falana mentioned that according to the CBN Act, the central bank is obligated to set the exchange rate.
“There’s no provision for floating the naira. It’s illegal. You say, ‘The value of the naira will be determined by market forces. That is not there in the law.
“I’ve had to sue the Central Bank of Nigeria at the Federal High Court because Section 16 of the Central Bank Act has imposed a duty on the Central Bank to fix and determine the rate of the naira vis-a-vis other currency,” he said
Noting that Section 20(1) of the CBN Act states that the official legal tender in Nigeria is solely the currency notes issued by the Central Bank, specifically the naira. He further explained that Section 20(5) of the Act deems it an offense, punishable by six months imprisonment, for anyone to use any other currency in Nigeria without the approval of the central bank, Falana stressed that unless government officials take steps to strengthen the naira and establish it as the sole legal tender in Nigeria, our progress will be limited.
He also noted that the Federal Government’s approval of N5 billion for each state and the FCT as palliatives is a temporary measure intended to divert attention.
“They are temporary measures. Some of them are quite diversionary and the people in government have not addressed the root of the crisis, which is the dollarisation of the economy.
“Whatever palliatives that are announced will be eaten up by the dollarisation of the economy.”