Human rights lawyer Femi Falana, SAN, has voiced his criticism against the recent decision of the Central Bank of Nigeria (CBN) to float the naira. Falana revealed that he is challenging this decision in court, asserting that it is illegal and does not align with the provisions of the CBN Act.
In a recent interview on Channels Television’s Sunrise Daily, Falana highlighted that the CBN Act mandates the central bank to establish the exchange rate, and there is no provision for floating the naira based on market forces. He stated, “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.”
Falana referred to Section 20(1) of the CBN Act, which designates the official legal tender in Nigeria as the currency notes issued by the Central Bank, specifically the naira. He pointed out that according to Section 20(5) of the Act, using any other currency in Nigeria without the central bank’s approval is an offense punishable by imprisonment.
The lawyer expressed concerns about the dollarization of the economy and called for steps to strengthen the naira’s status as the sole legal tender in Nigeria. Falana criticized the recent announcement of palliatives by the Federal Government, stating that such measures are temporary and won’t address the root cause of the crisis.
Falana’s legal challenge highlights the complex economic situation and the ongoing discussions surrounding Nigeria’s monetary policies.