Skip to main content

DOLLARISATION OF ECONOMY’, A MOCKERY OF BUHARI’S BUDGET – FALANA

Femi Falana
Human rights lawyer, Mr. Femi Falana (SAN), yesterday filed a suit before the Federal High Court in Abuja praying for an order restraining the Central Bank of Nigeria from allowing market forces to determine the exchange rate of the naira.
Punch reports that Falana also asked the court in his suit, HC/ABJ/CS/146/16, to direct the CBN to stop the use of the United States of America’s dollar as a legal tender in Nigeria.
The suit filed by a lawyer in his firm, Mr. Wisdom Elum is yet to be assigned to a judge.
Falana lamented that the CBN’s monetary policy had led to a situation where too much naira was made to chase a few dollars with an attendant weaker naira and adverse multiplier effects such as rising inflation, closure of factories and high level of unemployment.
He also alleged that the CBN had so “dollarised the economy” that the foreign currency had become a legal tender, with school fees as well as rents now being charged and paid in dollars “to the detriment of the economy.”
He contended that while the CBN had fixed the exchange rate at N198 to a dollar, and President Muhammadu Buhari had continued to restate his promise not to devalue the naira, the apex bank “had allowed market forces to increase the exchange rate to over N400 to a dollar.”
He said, “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.
<b>Femi</b> <b>Falana</b> © Photo: Hallmarks of Labour - http://www ...
“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.”
Faland wants the court to determine, “whether the monetary policy of the defendant, which allows market forces to fix and determine the exchange rate of the naira is not a violation of Section 16 of the CBN (Establishment) Act 2007 and Section 16 of the Constitution of the Federal Republic of Nigeria, 1999 as amended.”
The SAN asked the court to determine whether the CBN decision to allow the US dollar as a legal tender for payment of any amount in Nigeria was not a contravention of Section 20 of the CBN Act.
He sought the following prayers: “A declaration that by virtue of Section 16 of the CBN Act 2007 the defendant shall fix and determine the exchange rate of the naira by a suitable mechanism devised for that purpose.
“A declaration that the monetary policy of the defendant, which allows market forces to fix and determine the exchange rate of the naira, is illegal and unconstitutional as it violates Section 16 of the CBN Act 2007.
“A declaration that the dollarisation of the economy through the use of the US dollar as a legal tender in Nigeria is illegal and unconstitutional as it violates Section 20 of the CBN Act, 2007.
“An order of perpetual injunction restraining the defendant from allowing market forces to determine the exchange rate of the naira in any manner whatsoever and howsoever.
“An order directing the defendant to stop forthwith the use of the US dollar as a legal tender in Nigeria in any manner whatsoever and howsoever.”
.


Comments

Popular posts from this blog

FEDERAL ALLOCATION TO THE TWENTY FIVE LOCAL GOVERNMENTS IN DELTA STATE IN 2023

Below Is The Federal Allocation To The Twenty five Local Government Areas in Delta State In 2023: Aniocha North:  ₦2,631,989,064.8 Aniocha South:  ₦2,847,788,192.94 Bomadi:               ₦2,491,779,057.87 Burutu:                 ₦3,367,885,422.51 Ethiope East:      ₦3,178,376,209.24 Ethiope West:     ₦3,226,505,207.54 Ika North East:   ₦3,279,681,589.37 Ika South:            ₦3,117,284,050.15 Isoko North:        ₦2,968,741,529.30 Isoko South:       ₦3,372,633,698.8 Ndokwa East:     ₦2,766,813,948.49 Ndokwa West:   ₦3,108,983,376.16 Okpe:                    ₦2,750,960,811.06 Oshimili North:  ₦2,683,889,807 Oshimili South: ₦2,890,887,684.18 Patani:                 ...

OBOREVWORI: How Not To Glorify A 'One Chance' Governor - By Zik Gbemre

It is appalling how, in desperation to sustain its thieving hegemony over the Delta State Government since 1999, the Delta PDP had the audacity to impose the weakest, most uninformed contender, a local champion, as Governor over a state replete with accomplished men and women of immense capacity. Given this unenviable privilege, one would have expected the fortunate placeholder governor, Sheriff Oborevwori—whose only election campaign manifesto was pledging to improve on the failed leadership of Ifeanyi Okowa, his predecessor—to engage creative minds and individuals of proven integrity to assist him in making a difference. Rather than doing the needful, Oborevwori has worsened matters by electing to engage the same spent leaders, deadwood, and gluttons that have gained prominence in running the state down over successive administrations. The result has been a government of mediocre officeholders competing to run the state for their pockets at the detriment of the populace, under a gove...

MOMENT OF HONOUR: Ughelli Agog As Ovie Omo-Agege Arrives Home

It was a day of honour for Obarisi Senator Ovie Omo-Agege, CFR, the immediate past Deputy President of the Senate, and Delta State governorship candidate of the All Progressives Congress, as the people of Delta State came together from all ethnic nationalities to collectively celebrate and honour him. The grand reception in the ancient city of Ughelli was historic, marking the recognition of a distinguished Deltan who has brought great honour to the state and its people. Obarisi, Senator Ovie Omo-Agege arrived Osubi Airport flanked by Distinguished Senator Peter Nwaoboshi, Hon. Eric Oharisi and Hon. Evance Iwhurie. The streets of Ughelli came alive with jubilation as the former Deputy Senate President and his entourage drove into town. It was a historic moment, characterized by the beating of drums, vibrant displays of cultural pride, and an overwhelming sense of camaraderie among the people. The air filled with chants of joy, and the atmosphere electric with excitement—all painting a ...