Human rights activist and Senior Advocate of Nigeria (SAN), Femi Falana, has taken legal action against the Central Bank of Nigeria (CBN) at the Federal High Court over its decision to float the naira, describing it as illegal.
Falana, while speaking in a recent interview, insisted that there is no provision for floating the naira, noting the decision to allow the value of the naira to be determined by market forces is not backed by law.
His words:
“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 noted that Section 20(1) of the CBN Act provides that the only legal tender in Nigeria shall be the currency notes issued by the Central Bank: “only the naira.”
“Section 20 (5) of the Act also provides that anybody who spends any other currency in Nigeria without the approval of the central bank has committed an offence and shall be prosecuted”, he explained, adding, “The penalty is six months’ imprisonment.”
Falana argued that if government officials are not prepared to strengthen the naira and make it the only legal tender in Nigeria, “we’re not going to go far”.
