The Nigerian Bar Association (NBA) yesterday threatened legal action to challenge the plans by the Central Bank of Nigeria (CBN) to introduce new N5,000 note, describing the action as illegal.
The association in a communiqué issued at the end of its 52nd annual general conference in Abuja, advised the CBN to first submit the proposition to the National Assembly for legislative approval before any action can be taken on the matter.
The communiqué which was read by the immediate past President of the NBA, Mr. Joseph Daudu (SAN), noted since the apex bank is not the fourth arm of government, it cannot take unilateral decision in the introduction of the new Five thousand naira note which affect the entire country.
" It is our contention that such a measure that will affect the lives of Nigerians in many ways, is not a mere fiscal measure that the CBN can claim exclusive jurisdiction over. On the contrary, it is a legislative matter, with ramifications on the province of the National Assembly. Such a far reaching fiscal or currency measures, are beyond the competence or purview of the CBN", the communiqué noted.
The association described the planned introduction of Five thousand naira currency note, " as shallow, poorly though-out, hare brained initiative by the CBN to devalue of the naira, diminish the lives of Nigerians and push corruption and money laundering to a new unimaginable height".
On the argument by the CBN that the innovation will not promote inflation, the NBA said, it rejects same on the grounds that the realities of the Nigerian economy cannot be founded on the Western Business Model (WBM) that the CBN is familiar with.