Ondo State Government asks the Supreme Court to stop the federal government from implementing its policy on the redesign of the naira and the limiting of daily cash withdrawals by bank customers.
The Ondo State Government has filed a suit at the Supreme Court urging the court to stop the federal government from implementing the policy on redesign of the naira and reducing daily cash withdrawal limits by bank customers.
The state government also filed a separate application to join the suit instituted by Zamfara, Kaduna and Kogi states at the Supreme Court on the same issue.
The court on Wednesday granted an injuction sought by the three northern states to stop the Central Bank of Nigeria from closing the window for the swapping of the N200, N500 and N1000 banknotes for the new designs of the notes on Friday.
But on Thursday, in an originating summon filed and signed by the Attorney-General of Ondo State, Charles Titiloye, the state government prayed the Supreme Court to stop the implementation of the directive issued by federal government through the Central Bank of Nigeria on limitation of daily cash withdrawals from banks.
Mr Titiloye said the policy has totally paralysed and brought to a standstill the activities of Ondo State Government and adversely affected economic and commercial activities in the state.
The suit contended that the guideline on daily maximum cash withdrawal was an infraction on the legal rights of Ondo State Government and its citizens to access funds for execution of developmental projects, small credit facilities to petty traders (who have no account in banks) and is highly detrimental to daily commercial activities in the state.
The government urged the Supreme Court to declare that the federal government cannot by directive issued through the Central Bank of Nigeria, amend or vary an existing Act of the National Assembly, particularly Section 2 of the 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 withdrawal for individual and corporate organisation at N500,000 and Five (5) Million Naira respectively.
The Ondo state Government is also 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.
It also averred that while it had more than 149 ministries, departments and agencies to run on daily basis in a state with more than three million people, less than five hundred thousand people had bank accounts through which bank transfers could be made.
"Consequently the policy of the Federal Government has totally paralysed the economy of the state," the state government said.
It further submitted that the citizens of the state now spend precious hours at banks' ATM waiting to collect the new naira notes 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 the other separate application, the state government prayed the Supreme Court to join it in the suit filed by the said three states challenging the 10 February deadline for change of old naira notes for new naira notes.
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The application said the government and people of Ondo State are experiencing the same excruciating economic and financial hardship occasioned by the said "incoherent demonetisation policy" currently introduced by the Federal Government through the Central Bank of Nigeria.
Ondo Governor Rotimi Akeredolu recently appealed to President Muhammadu Buhari to intervene and stop the implementation of the controversial CBN policy.
The Supreme Court had ruled on Tuesday, asking the CBN to stop the enforcement of the February 10 deadline for the old notes to expire as legal tender pending the determination of the substantive suit.
However, the federal government has called on the Supreme Court to dismiss the suit, saying the court lacks jurisdiction to hear the suit.
Meanwhile, the federal government says it will comply with the order of the court.
