A federal high court in Lagos has dismissed a suit challenging the legality of the Central Bank of Nigeria (CBN)’s cashless policy.
Akintayo Aluko, the presiding judge, gave his ruling on Friday in a suit filed by one Victor Onyegbado who claimed the policy was unconstitutional, and that it subjected him to restrictions.
The plaintiff asked the court to issue an order of perpetual injunction restraining the CBN from implementing the policy, adding that its implementation violated Section 42 (1) (a) (b) of the constitution.
The CBN, through its legal team led by Fabian Ajogwu, prayed the court to, among others, dismiss the suit for lack of jurisdiction.
In his ruling, the judge held that the CBN was able to prove that its policy was made in good faith.
“It is not in doubt that the defendant by the provision of Section 51 of the CBN Act is imbued with the power to make regulations for the good order and management of the apex bank,” he held.
“The phrase ‘good faith’ has been defined in the Blacks Law Dictionary, the 9th edition at page 762 as ‘faithfulness to one’s duty or obligation, observance of reasonable commercial standards of fair dealing in a given trade or business, absence of intent to defraud or seek unconscionable advantage’.
“The defendant has stoutly made a case of good faith for itself and endeavoured to justify its action in the issuance of the circular in controversy.
“It is in its case that the cashless policy envisaged in the circular is aimed at reducing the amount of physical cash in the circulation in the economy, to encourage more electronic-based transactions, fight corruption and insecurity in the land and strengthen the country’s economy amongst others.
“I have once again examined the circular and the cashless policy prescribed in it. It is obvious that the aims and purpose behind the decision of the defendant accord with the definition given to the phrase “good faith” in the Blacks Law Dictionary.
“I, therefore, agree with the learned senior counsel for the defendant that the action of the apex bank culminating in the issuance of the cashless policy and its implementation can be said to have been done in good faith.
“I hold the considered view that the defendant is entitled to the protections provided in Section 52 of the CBN Act and Section 53 BOFIA.
“Going by the above statutory provisions and having issued the circular dated September 17, 2019, in good faith, the defendant is not answerable to the grievance and claims of the plaintiff and the jurisdiction of this court to entertain the instant claims of the plaintiff is effectively curtailed and given a swipe.
“Against the background of the foregoing, this issue is resolved in favour of the defendant against the plaintiff.
“Coming from the above, I hold the considered view that the case of the plaintiff lacks merit and substance. Same is fundamentally infected with the virus of frivolity and meddlesomeness.
“The plaintiff has failed to prove or substantiate the alleged violation of his fundamental rights or the much-touted infraction of Section 42 (1) (a) of the constitution of the Federal Republic of Nigeria, 1999 (as amended). Remedy over the alleged infraction of the fundamental rights of the plaintiff is not available to him as no such case has been successfully made out by him.
“This suit is accordingly struck out on grounds of incompetence, lack of proof and absence of jurisdiction.”
In a circular released in September 2019, the CBN had directed all deposit money banks in the country to charge 3% processing fees for withdrawals and 2% for deposits of amounts above N500,000 for individual accounts.
Corporate account holders were to be charged 5% processing fees for withdrawals and 3% for deposits of amounts above N3 million.
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