.

Femi Falana Asserts Illegality of Naira Float by CBN

 


Senior Advocate of Nigeria (SAN), Femi Falana, has asserted that the Central Bank of Nigeria's decision to allow the Naira to float in the foreign exchange market is in violation of the law.

In a Friday interview with Channels Television, monitored by DAILY POST, Falana expressed his viewpoint. He noted that the country's economy is facing a crisis due to its dollarization.

The human rights lawyer expressed concern over the adoption of the US Dollar for domestic transactions like rent and school fees, which has consequently exerted pressure on the Naira.

Falana emphasized, "The primary issue is the dollarization of our economy. Unless the government takes steps to reinforce the Naira's value and establish it as the exclusive legal tender within Nigeria, our problems will persist."

From a legal perspective, he elaborated, "I took legal action against the Central Bank of Nigeria in the Federal High Court, citing that section 16 of the Central Bank Act empowers the bank to determine the Naira's exchange rate against other currencies; therefore, there is no provision for floating the Naira."

He continued, "According to section 20 of the Central Bank Act, the only accepted legal tender in Nigeria is the currency issued by the Central Bank."

As a reminder, the CBN initiated the floatation of the Naira in the foreign exchange market in June.

Post a Comment

Previous Post Next Post