Edo and Bayelsa states back federal government and CBN lawsuit on cashless policy

EDO and Bayelsa states caused a stir in the Supreme Court earlier today when they pitched their tents with the federal government in suit by several other states against the Central Bank of Nigeria (CBN) over its cashless society policy.

On November 23 last year, the Central Bank of Nigeria (CBN) launched redesigned ₦‎200, ₦‎500 and ₦‎1000 banknotes, saying the naira was long overdue to wear a new look. Nigerians had been given until January 31 to hand in all old notes, after which time they will cease to be legal tender but the process has been fraught with difficulties, prompting the National Assembly to ask the CBN to extend the deadline.

Across the country,  the last few weeks have been sheer hell for Nigerians as they have found it impossible to get hold of these new notes and this currency scarcity has created shortages in other areas, with petrol shortages now a chronic problem too. Last week, ruling in a case filed by the Kaduna, Kogi and Zamfara state governments, Nigeria's Supreme Court ordered the CBN not to end the use of old naira notes on the February 10 deadline it had previously set.

With the matter still being debated on court, Edo State, represented by a Senior Advocate of Nigeria, told a panel of seven judges that it was in support of the cashless policy regime and sought to be joined as respondent. Bayelsa State followed suit when through its counsel Damian Dodo, announcing support for the federal government and applied to be joined as respondent in the matter.

However, six other states on Lagos, Cross River, Ogun, Ekiti, Ondo and Sokoto joined their counterparts, Kaduna, Kogi, and Zamfara in the legal battle against the federal government. Their joinder motion was moved by Samuel Ologunorisa and was granted by Justice John Okoro who presided over the matter.

Subsequently, the court directed the plaintiffs to amend their originating summons to reflect the name of the six fresh plaintiffs. Justice Okoro also directed the federal government, Edo and Bayelsa states to amend their statements of defence to reflect the new position of the case.

Meanwhile, hearing in the suit has been shifted to Wednesday February 22 following consensus by the parties. In another drama, River State has filed a separate suit against the federal government on the same matter through its counsel, Emmanuel Ukala, declining to team up with other states, adding that they would prefer to pursue the case independently.