Naira Crisis: Govs Fear Recession, Four More States Join Legal Battle

More states have joined the legal battle against the Federal Government over the currency redesign policy of the Central Bank of Nigeria.

Attorneys-General of Ekiti, Bayelsa, Sokoto and Rivers states told press on Sunday that their states were set to join as co-plaintiffs in the suit filed by the governments of Kaduna, Kogi and Zamfara states.

The states are opposing the February 10 deadline for the currency swap policy on the grounds that it was inflicting suffering on their citizens.

Kano and Ondo had earlier joined the three states, which filed the suit number SC/CV/162/2023 at the Supreme Court.

This is as the Nigerian Governors Forum warned on Sunday that the crisis occasioned by the CBN policy might cause another economic recession in the country.

Following the application of the three northern states of Kaduna, Kogi and Zamfara, the Supreme Court last Wednesday issued an ex parte order restraining the Federal Government and CBN from enforcing the February 10 deadline for the swap of the old N1000, N500 and N200 notes.

But the Federal Government approached the apex court to vacate the order.

However, in the application filed on Friday and made available to press on Sunday, Ekiti through its Attorney-General and Commissioner for Justice, Mr Dayo Apata, SAN, asked for three reliefs.

The state government is seeking “leave of this honourable court (Supreme Court) to join the applicant as a co-plaintiff in this suit; an order of this court joining Attorney-General of Ekiti State as a co-plaintiff in this suit; and for such order or further orders that this honourable court may deem fit to make in this circumstance of this suit.”

Apata premised the application on various grounds including “the acute shortage in the supply of naira notes in Ekiti State since the announcement of the policy by the Federal Government through the CBN.”

The state government also averred that “the directive of the Federal Government of Nigeria had affected the livelihood and had inflicted excruciating pain and hardship on all Nigerians, including citizens of Ekiti State.”

It also argued that the directive of the Federal Government has also adversely affected the revenue, levies and taxes accruable to the coffers of Ekiti State Government as economic activities in the state were now completely paralyzed.

The state government said, “The directive of the Federal Government of Nigeria on the naira redesign has also created palpable anxiety among the citizens of Ekiti State.

“Ekiti is a federating state of Nigeria and therefore has an interest in the determination of the originating summons in the suit earlier filed by the three states in the federation, having a common interest as other plaintiffs and also in the outcome of the suit, sought the leave of the court to be joined as a co-plaintiff in order to be bound by the outcome of the suit.”

It also stated that no injustice or embarrassment ‘’will be occasioned to any of the parties on record if it is joined as a co-plaintiff to ventilate the grievances of Ekiti State.’’

The state government supported its application with the argument that the apex court had always been of the stance that anyone whose presence is crucial and fundamental to a suit must be made a party to the proceedings.