Human rights advocate Femi Falana has initiated legal action against the Central Bank of Nigeria (CBN) concerning the recent decision to float the Naira currency.
In an interview on Channels Television, Falana confirmed that he has filed a lawsuit against the CBN in response to its directive to Deposit Money Banks to allow the Naira to float freely against international currencies, including the dollar.
The policy was introduced in June when the Naira’s exchange rate at the Investors and Exporters (I&E) window ranged between 730 and 755 to the dollar.
Falana criticized the CBN’s decision to float the Naira as unlawful and is contesting it in court. He explained that the move contradicts the law and asserted, “There’s no provision for floating the Naira. It’s illegal.”
Falana elaborated that Section 16 of the Central Bank Act obligates the CBN to determine the Naira’s exchange rate against other currencies.
The prominent lawyer highlighted that the CBN Act mandates the apex bank to set the exchange rate. He emphasized that only currency notes issued by the Central Bank, specifically the Naira, are recognized as legal tender in Nigeria.
Falana cited Section 20(5) of the Act, which states that using any other currency without the central bank’s approval constitutes an offense punishable by up to six months’ imprisonment.
Falana also voiced his belief that unless government officials commit to bolstering the Naira’s value and establishing it as the sole legal tender in Nigeria, the country’s economic progress will be impeded.
Regarding the Federal Government’s allocation of N5 billion to each state and the Federal Capital Territory for food distribution to the underprivileged, Falana criticized these measures as temporary and diversionary.
He maintained that these initiatives fail to address the root cause of the crisis, which he identified as the growing dollarization of the economy.
Falana argued that any relief efforts announced would be outweighed by the broader economic impact of dollarization.