Falana takes legal action to rescue Naira

– Femi Falana wants the Federal High Court in Abuja compels CBN to stop use of dollar as legal tender in Nigeria

– The legal icon seeks a review of CBN’s policy on Naira

Foremost human rights lawyer, Femi Falana (SAN) on Wednesday approached the Federal High Court in Abuja seeking an order restraining the Central Bank of Nigeria (CBN) from allowing market forces to determine the exchange rate of Naira.

In the suit FHC/ABJ/CS/146/16,  the legal icon prays the court compels CBN to stop the use of the United States of America’s dollar as a legal tender in Nigeria.

Leadership reports that the suit filed by Wisdom Elum on behalf of the sued CBN as the sole defendant in the suit which had yet to be assigned to a judge.

According to Falana,  CBN’s monetary policy‎ had led to a situation where too much Naira was made to chase a few dollar with adverse multiplier effects such as rising inflation, closure of factories and high level of unemployment.

Falana is not impressed that dollar has become a legal tender in Nigeria as school fees as well as rents now being charged and paid in dollars to the detriment of the economy.

He posited that the move by CBN to peg the exchange rate at N198 to a dollar, and President Muhammadu Buhari’s resolve not to devalue the Naira has allowed market forces jack up exchange rate to over N400 to a dollar.

A supporting affidavit deposed to by Femi Adedeji of thesame firm stated that the devaluation of the currency and dollarisation of the economy have made mockery of the yet to be passed 2016 budget of the federal government.

”The monetary policy of the defendant (the CBN) has led to a situation whereby too much naira chase few dollars thereby making the naira weaker in relation to the dollar and instigating an adverse multiplier effect.

”The monetary policy of the defendant has also led to increasing costs, rapidly rising inflation and interest rates, closure of factories and the attendant high level of unemployment,” it reads.

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