GOVERANCE

CBN: Ondo Govt Takes FG To Supreme Court Over Cash Withdrawals Limit

The Ondo State Government has approached the Supreme Court and filed a suit against the Federal Government in respect of the directive issued through the Central Bank of Nigeria (CBN)  limiting daily cash withdrawals from banks.
The government is asking the apex court to stop implementation of the Federal Government directives limiting Nigerians ability to withdraw cash from banks, describing the policy as cause for the current economic challenges.
It added that the policy being implemented by CBN had brought activities at different offices in Akure, the state capital to standstill, leaving an adversely affected economic and commercial activities in the state.
The suit was disclosed through a statement released by the Special Assistant to Attorney-General, Kola Adeniyi, and made avilable to newsmen.

 

It contended that the guideline on daily cash withdrawal set by the central government was an infraction on the legal rights of Ondo State Government and its citizens and that it affects access to funds for execution of developmental projects, small credit facilities to petty traders without bank accounts and  highly detrimental to daily commercial activities in the state.

The government, meanwhile, noted that it would be joining the suit instituted by Zamfara, Kaduna and Kogi states on the timeframe within which citizens and the Government can swap the old Naira Note for the new Naira note.

In a motion on notice signed and filed before the court by the Attorney General and Commissioner for Justice, Charles Titiloye, prayed the Supreme Court to join Ondo state Government in the earlier suit filed by the said three states challenging the 10th of February, 2023 deadline for change of Old Naira Notes for New Naira notes by the Central Bank of Nigeria.

 The Attorney General noted that Ondo State Government and people were currently experiencing same excruciating economic and financial hardship occasion by the policy introduced by the Federal Government through CBN.
According to the statement, Ondo State Government urged the Supreme Court to declare that the Federal Government cannot by directive issued through Central Bank of Nigeria, amend or vary an existing Act of National Assembly particularly Section 2 of Money Laundering Act which relates specifically to limitations on cash withdrawals for individual and Corporate organisation to Five (5) million Naira and Ten (10) million Naira respectively. The updated guidelines issued by CBN now places maximum cash withdrawal for individuals and corporate organisations at N500,000 and Five (5) Million Naira respectively.
“Ondo state Government is asking the Supreme Court to decide whether the guidelines issued by the Federal Government on maximum daily cash withdrawal and the continuous suffering and hardship caused by the implementation of the said policy is not in conflict with the express provision of section 2 of the Money Laundering Act, Sections 20, 39 and 42 of the Central Bank of Nigeria Act.
“Ondo state Government averred that while it has more than 149 Ministries, Departments and Agencies to run on daily basis in a state with more than  three (3) million people, less than five hundred thousand people have bank accounts through which bank transfer can be made.  Consequently the policy of the Federal Government has totally paralysed the economy of the state.
“Ondo state Government averred that the citizen of Ondo state now spends precious hours at Banks ATM waiting to collect the new Naira note while citizens in the rural areas and villages without Banks and internet facilities have been shut out from receiving or transferring money to meet their daily economic needs
“The Government urged the Supreme Court to intervene and stop further implementation of the said Federal Government policy.
“In a related case, Ondo state Government filed an application before the Supreme Court seeking to join the suit instituted by Zamfara, Kaduna and Kogi states on the timeframe within which citizens and the Government can swap the old Naira Note for the new Naira note. In a motion on notice signed and filed on Thursday 9th of February, 2023, Sir Charles Titiloye Ksm FCArb, the Attorney General and Commissioner for Justice, Ondo State prayed the Supreme Court to join Ondo state Government in the earlier suit filed by the said three states challenging the 10th of February, 2023 deadline for change of Old Naira Notes for New Naira notes by the Central Bank of Nigeria.
“The Attorney General noted that Ondo State Government and people are currently experiencing the same excruciating economic and financial hardship occasion by the said incoherent demonetization policy currently introduced by the Federal Government through the Central Bank of Nigeria.
It will be recalled that the Governor of Ondo State, Arakunrin Oluwarotimi Akeredolu recently appealed to President Muhammadu Buhari to intervene and stop further implementation of the new Naira Note swap guidelines issued by the Central Bank of Nigeria.
ALSO READ  National Grid: We Will Restore Power Supply Soon- FG

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button