Naira crisis: Ondo, Kano join three other states to sue FG

Two state governments, Ondo and Kano, have joined Kogi, Zamfara and Kaduna in dragging the Federal Government to court over the February 10 deadline for old N200, N500 and N1000 notes to cease to be legal tender as announced by the Central Bank of Nigeria.

This came after the CBN had redesigned new notes to replace the old notes but the new ones are scarce, causing chaos in the bank arenas.

The Ondo and Kano state governments filed a separate application  to join the suit earlier instituted by three states at the Supreme Court on the same issue.

The court on Wednesday granted an injunction sought by the three northern states to stop the CBN from closing the window for the swapping of the N200, N500 and N1000 banknotes for the new designs of the notes on Friday.

But on Thursday, in an originating summon filed and signed by the Attorney-General of Ondo State, Charles Titiloye, the state government prayed the Supreme Court to stop the implementation of the directive issued by federal government through the Central Bank of Nigeria on limitation of daily cash withdrawals from banks.

The Kano State Government also on Thursday evening filed a suit against the FG at the Supreme Court in respect of the naira redesign policy.

Titiloye said the policy had totally paralysed and brought to a standstill the activities of Ondo State Government and adversely affected economic and commercial activities in the state.

The suit contended that the guidelines on daily maximum cash withdrawal were an infraction on the legal rights of Ondo State Government and its citizens to access funds for execution of developmental projects, small credit facilities to petty traders (who have no account in banks) and is highly detrimental to daily commercial activities in the state.

The Kano State Attorney General, through his Counsel, Sunusi Musa, SAN, is asking the apex court to declare that the President, Major General Muhammadu Buhari (retd.), cannot unilaterally direct the CBN to recall the now-old N200, N500 and N1,000 banknotes without recourse to the Federal Executive Council and National Economic Council, respectively.

The Kano government is praying a mandatory order seeking a reversal of the Federal Government policy to recall the N200, N500 and N1,000 notes from circulation due to the policy affecting the economic well-being of over 20 million Kano citizens.

The applicant is also seeking for mandatory order, compelling the Federal Government to reverse the naira redesign policy for alleged failure to comply with 1999 Constitution (as amended).