‘Why Court Might Rule That the Naira Redesign Is Illegal’

Human rights lawyer Femi Falana (SAN) has stated that President Muhammadu Buhari’s recent naira redesign and endorsement may be declared illegal in court.
Track News previously reported that the Central Bank of Nigeria (CBN) announced on October 26 that it would redesign the N200, N500, and N1,000 notes in order to gain control of the currency in circulation. The redesigned notes were recently unveiled by the central bank ahead of a meeting of the Federal Executive Council (FEC).

However, Falana said in a statement on Sunday that the President is expected to present a money bill to the National Assembly for approval before the policy is implemented.

He stated that the President’s official endorsement is insufficient because the President is required to present a Money Bill to the National Assembly for the withdrawal of billions of Naira from the public fund earmarked for the printing of new naira notes.

Section 59 of the Constitution, according to Falana, requires “an appropriation bill or supplementary bill, including any other bill for the payment, issue, or withdrawal of any money charged thereon from the Consolidated Revenue Fund or any other public fund of the Federation, or any alteration in the amount of such payment, issue, or withdrawal…”

Mr. Godwin Emefiele, Governor of the Central Bank of Nigeria, announced on October 26, 2022, that the CBN would issue the redesigned N200, N500, and N1,000 notes on December 15, 2022. In opposing the policy, Finance Minister Zainab Ahmed claimed that she was not consulted prior to the announcement.

President Muhammadu Buhari, on the other hand, confirmed that he supported the redesign of the Naira in accordance with Section 18 of the Central Bank Act. Indeed, the President has since unveiled the redesigned Naira Notes proposed by Nigeria’s Central Bank (CBN)

The official endorsement, however, is insufficient because the President is required by law to present a Money Bill to the National Assembly for the withdrawal of billions of Naira from public funds earmarked for the printing of new Naira notes.

Section 59 of the Constitution specifically states that “an appropriation bill or supplementary bill, including any other bill, for the payment, issue, or withdrawal from the Consolidated Revenue Fund or any other public fund of the Federation of any money charged thereon, or any alteration in the amount of such payment, issue, or withdrawal…”

Because the fund for printing the new Naira notes is not included in the 2022 Appropriation Bill, the President is advised to prepare and present a supplementary bill to the National Assembly authorizing the withdrawal of public funds from any Federation Account for the purpose of printing the new Naira notes. Otherwise, if challenged in a court of competent jurisdiction, the printing of the new Naira without appropriation by the National Assembly may be declared illegal and unconstitutional.

SAN Femi Falana

Chairperson of the Alliance for Surviving Covid 19 and Beyond (ASCAB)