Renowned human rights lawyer, Femi Falana, has taken a legal stand against the Central Bank of Nigeria (CBN) over its recent decision to float the national currency, the naira. Falana asserts that the move by the CBN, under President Bola Tinubu's administration, is in violation of the law. The esteemed lawyer has now initiated a legal challenge in court to contest the legitimacy of the naira's floatation.
The controversy stems from a directive allegedly issued by the CBN on June 14. Reportedly, the apex bank instructed Deposit Money Banks to allow the naira to freely fluctuate against the US dollar and other international currencies. This directive came at a time when the naira was trading within the range of 730 to 755 to the dollar at the Investors and Exporters (I&E) window.
As of the latest update on Friday, the official CBN website displays the exchange rate as ranging between N744 and N746 per US dollar.
During a recent appearance on Channels Television’s Sunrise Daily, Falana voiced his opposition to the CBN's decision. He highlighted that the CBN Act mandates the apex bank to establish a fixed exchange rate, and floating the naira contradicts this legal provision. Falana emphasized, "There’s no provision for floating the naira. It’s illegal. You say, ‘The value of the naira will be determined by market forces.’ That is not there in the law."
This legal challenge brought forth by Femi Falana against the CBN's naira float decision could potentially have far-reaching implications for the Nigerian financial landscape. The court's eventual ruling will likely impact the country's economic policies and the autonomy of its central bank. This case will undoubtedly be closely followed by financial experts, legal analysts, and the general public as it unfolds in the legal arena.
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