Human rights lawyer Femi Falana has argued that the Central Bank of Nigeria’s decision to float the naira is illegal and is being challenged in court.
Falana stated that the CBN Act made it compulsory for the apex bank to fix the exchange rate and that there is no provision for floating the naira. He stated that Section 16 of the Central Bank Act imposes a duty on the Central Bank to fix and determine the rate of the naira vis-à-vis other currencies.
Falana also highlighted that Section 20(1) of the CBN Act provides that the only legal tender in Nigeria shall be the currency notes issued by the Central Bank, and Section 20(5) of the Act also provides that anyone who spends any other currency in Nigeria without the Central Bank’s approval is guilty of an offence and shall be prosecuted.
Falana argued that as long as government officials are not prepared to strengthen the naira and make it the only legal tender in Nigeria, progress will not be made.
She also commented on the Federal Government’s approval of N5 billion for each state and the Federal Capital Territory (FCT), arguing that these measures are diversionary and that the root of the crisis is the dollarization of the economy.
