Naira Crisis: FG, States Consider Out-Of-Court Settlement

Naira Crisis: FG, States Consider Out-Of-Court Settlement | Daily Report Nigeria

The Federal and State Governments on Wednesday night considered an out-of-court settlement for the litigations trailing the naira policy of the Central Bank of Nigeria (CBN).

Daily Report Nigeria recalls that Kaduna, Kogi, and Zamfara state governments had approached the Supreme Court, seeking the apex bank to be restrained from going ahead with the February 10 deadline for the circulation of old naira notes.

Meanwhile, Bayelsa and Edo states later joined as co-defendants with the federal government.

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The apex court yesterday fixed all the suits for hearing on Wednesday, February 22.

However, reports emerged on Wednesday that the federal government has reached out to some of the states to settle the matter out-of-court.

The Kaduna State government, via a statement, said officials of the federal government have contacted Governor Nasir El-Rufai and some of his colleagues to settle the matter out of court.

A statement by the Special Adviser to El-Rufai on (Media & Communication), Muyiwa Adekeye, said senior officials of the federal government have reached some governors, including El-Rufai, on phone to initiate discussions on a possible out-of-court settlement.

It read:
The terms they proposed were to allow only the old N200 note to remain legal tender and be circulated by the CBN till 10 April 2023. They claimed that the CBN had already destroyed the old N500 and N1000 notes that had been deposited, but that those persons who still held the old notes could redeem them up to 10 April 2023.

“These were not considered as serious proposals, for obvious reasons. Circulating the old N200 notes alone would not be sufficient to relieve widespread human suffering in Kaduna State and indeed in Nigeria today. They knew that and that is why they falsely claimed that the CBN had already destroyed the old N500 and N1000 notes.

“This is contrary to the facts available to the governors to the effect that the old notes were in the custody of commercial bank branches throughout Nigeria until the evening of Monday, February 13, and not a single N500 or N1000 had been destroyed.

“It is also a non-starter to insist on a new cut-off date without first assuring that sufficient new notes would have been printed and circulated. The information available to the governors also indicates that the Mint will need at least 12 months to print the minimum amount of N1 trillion needed to ensure a functioning trade and exchange environment in Nigeria.”

The statement had added that there was no reaction from the federal government as a presidential spokesperson, Garba Shehu, had declined to comment on the matter.

But, Buhari finally reacted to the statement during his broadcast on Thursday morning where he asked the Central Bank of Nigeria to recirculate only the old 200 Naira note while banning 500 and 1000 notes.

VIDEO: ‘No Money, No Voting,’ Women Protest Naira Scarcity in Edo


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