INSTANT NEWS

The Supreme Court has ruled that both the old and redesigned Naira banknotes will continue to be valid legal tender in Nigeria beyond December 31. The court, led by Justice Inyang Okoro, issued this order, stating that the banknotes should stay in circulation until the Federal Government, after due consultation with relevant stakeholders, decides on the matter. The ruling follows an application moved by the Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi, SAN, on behalf of the federal government. Earlier, on March 3, the court nullified the ban on old N200, N500, and N1000 banknotes as valid legal tenders, allowing their use alongside redesigned currencies until the end of the year.

In its lead judgement, the Supreme Court criticized the Federal Government for introducing the demonetization policy through the Central Bank of Nigeria without proper consultation with relevant stakeholders. The court emphasized that the government failed to provide valid notice to federating units before withdrawing old banknotes. The court held that the notice given, conveyed through press remarks by the CBN governor, did not meet the requirements of "reasonable notice" as per the CBN Act. Additionally, the court invalidated President Buhari's directive, accusing him of disobeying its interim order to keep old banknotes in use until the case's determination.

The Supreme Court stressed that the President's actions, in banning the old banknotes, were contrary to democratic governance and indicated disobedience to its previous order. As the administration led by President Bola Tinubu sought an indefinite extension beyond the December 31 deadline, the Supreme Court reaffirmed the continued validity of both old and new Naira notes.

The Central Bank of Nigeria (CBN) is intensifying efforts to combat currency hoarding and speculation, which are believed to contribute to the depreciation of the naira against major foreign currencies. Speculators and hoarders, identified as undermining government initiatives to stabilize the naira, face increased scrutiny. Recent positive strides in naira appreciation were marred by a subsequent decline, prompting suspicions of artificial market manipulation through speculation and hoarding.

While many Nigerians celebrated the previous naira appreciation, speculators and hoarders incurred losses, leading to suspicions that powerful entities, including politically exposed persons involved in foreign exchange round-tripping, are resisting government measures. The CBN, armed with intelligence, is poised to launch a campaign targeting these individuals, aiming to decisively address their disruptive activities.

A source within the CBN, speaking anonymously, revealed the central bank's determination to counteract the pushback from speculators and traders. The CBN plans to initiate a robust campaign against these disruptive forces to preserve the recent gains made in stabilizing the naira. Aminu Gwadabe, President of the Association of Bureau de Change Operators of Nigeria (ABCON), emphasized the CBN's readiness to inflict consequences on currency speculators, emphasizing the risks associated with attempting to manipulate the naira against its recent positive trajectory. The CBN's multifaceted approach includes measures such as dollar liquidity injection and naira mopping through interest rate hikes. The market is cautioned against further attacks on the naira, as the CBN remains well-equipped to safeguard its recent successes.

The Nigeria Labour Congress (NLC) has voiced its concerns over the severe consequences of the forex crisis on the nation's economy. The NLC President, Joe Ajaero, attributed the sharp depreciation of the national currency to government officials' preference for foreign luxury goods. He warned that the economy was at risk of enduring a series of negative consequences unless the naira stabilized against the US dollar.

The NLC's statement came ahead of a meeting between organized labor and the Federal Government, scheduled for today, where they will review the implementation of the Memorandum of Understanding signed regarding subsidy removal palliatives.

The NLC has recommended that public officials should support the naira by purchasing locally-manufactured products, rather than foreign luxury items. They emphasize the importance of patronizing Nigerian brands and express their concerns about the negative impact of officials opting for foreign products on the naira's value. They state that these actions "de-market" the naira and call on officials to be more patriotic in their choices, favoring domestically-made goods.

The labor union warns that without immediate interventions, they may be compelled to take action to prioritize the rescue of the naira, the economy, and the nation as a whole. They stress the significance of boosting local production and consumption of domestic products while reducing imports to stabilize the naira. Additionally, they suggest that commodities for export should be priced in naira.

Labor also raises concerns about ongoing disputes with the Imo State government, including unpaid salaries, wrongful designation of workers as ghost workers, destruction of the NLC state Secretariat, discriminatory pay practices, non-compliance with the National Minimum Wage, and unsettled gratuity arrears. They express their intent to embark on mass protests and industrial action to protect workers' rights in Imo State if the government does not resolve these issues. Labor warns that if necessary, they will shut down the state on the governorship election day, November 11, 2023.