The Supreme Court of Nigeria has postponed the hearing of the case regarding the naira swap policy of the Central Bank of Nigeria (CBN) until February 22, 2023. The case was brought against the CBN and the Federal Government by ten states, including Kaduna and Kogi, with other states such as Niger, Kano, Ondo, and Ekiti seeking to be included in the suit. Lagos, Bayelsa, and Edo states have also applied to be joined as respondents.
Justice John Okoro led the seven-man panel and highlighted the case’s importance and its potential impact on the suffering of Nigerians. The naira swap policy was introduced by the CBN to address the chronic shortage of foreign exchange in Nigeria. It allows the CBN to provide dollars to importers and exporters who repay the dollars with naira at a later date. However, the policy has been controversial, with some arguing that it is an unsustainable solution to the foreign exchange crisis.
The ten states that filed the case against the CBN and the Federal Government argue that the naira swap policy violates Nigeria’s constitution, which requires all revenues generated by the country to be paid into a single account at the central bank. The states also claim that the policy undermines their ability to collect taxes as it allows some importers and exporters to avoid paying customs duties.
Furthermore, the states argue that the policy encourages corruption, undermines the integrity of the banking system, and is harmful to the economy. They also claim that the policy has led to the devaluation of the naira and contributed to inflation in the country.
The case has been ongoing, with the states seeking to have the naira swap policy declared unconstitutional and struck down. The adjournment of the case until February 22 will give the parties involved more time to prepare their arguments and make their case before the Supreme Court.
The outcome of the case will have far-reaching consequences for Nigeria’s economy and its people. The naira swap policy has been controversial since its introduction, with many arguing that it is not a sustainable solution to Nigeria’s foreign exchange crisis. The case before the Supreme Court highlights the ongoing struggle to find a solution to Nigeria’s economic challenges, including high inflation, a shortage of foreign exchange, and rising debt levels. The naira swap policy is just one of the many challenges facing the country, and the outcome of the case will be critical in determining the way forward.
