Femi Falana drags CBN to court over ‘weakened naira’

Human rights lawyer, Femi Falana (SAN) has filed a suit before the Federal High Court in Abuja on Wednesday, February 24 requesting the court to stop the Central Bank of Nigeria from letting market forces control the exchange rate of the naira....


In his suit, FHC/ABJ/CS/146/16, Falana also requested the court to compel the CBN to stop the use of the American dollar as a legal tender in Nigeria.

The suit, in which CBN is the sole defendant, was filed on behalf of Falana by Wisdom Elum, who is a lawyer at Falana's firm.

Falana blamed the CBN's monetary policy as the cause of the weakened naira while noting that the policy generated negative effects like rising inflation, increased level of unemployment and closure of factories.

He also stated that the CBN had so "dollarised the economy" that the dollar had turned to a legal tender in the country with school fees and other general payments being charged and paid in the foreign currency to the "to the detriment of the economy".

He also said the CBN "had allowed market forces to increase the exchange rate to over N400 to a dollar" while it fixed the exchange rate at N198 to a dollar with President Muhammadu Buhari insisting on not devaluing the naira.

Femi Adedeji, another lawyer in Falana's firm deposed a supporting affidavit, stating that "the devaluation of the currency and dollarisation of the economy have made mockery of the yet to be passed 2016 budget of the Federal Government."

"The monetary policy of the defendant (the CBN) has led to a situation whereby too much naira chase few dollars thereby making the naira weaker in relation to the dollar and instigating an adverse multiplier effect."

"The monetary policy of the defendant has also led to increasing costs, rapidly rising inflation and interest rates, closure of factories and the attendant high level of unemployment."