FALANA SUES CBN OVER USE OF DOLLAR AS LEGAL TENDER IN NIGERIA, NAIRA DEPRECIATION

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Femi-FalanaHuman rights lawyer, Mr. Femi Falana (SAN), has asked the Federal High Court sitting in Abuja to restrain the Central Bank of Nigeria (CBN) from allowing market forces to determine the exchange rate of the naira.
 
The Senior Advocate of Nigeria also asked the court to direct the CBN to stop the use of the United States dollar as a legal tender in Nigeria.
 
The suit was filed on Wednesday, 24 February 2016 and is yet to be assigned to a judge for hearing.
 
In the suit, Mr Falana, alleged 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 now become legal tender with school fees and rents now being charged and paid in dollars to the detriment of the economy.
 
The Senior Advocate wants the court to make a declaration that by virtue of Section 16 of the CBN Act 2007, the CBN shall fix and determine the exchange rate of the naira by a suitable mechanism devised for that purpose.
 
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