January 28, 2008
The reported decision of the Central Bank of Nigeria to pay the statutory allocations of the Federal, State and Local Governments in the American dollars is a calculated subversion of the sovereignty of the Federal Republic of Nigeria. As Nigeria is not a colony of the United States of America the decision ought to be challenged by all patriotic Nigerians. In particular, the action is not only illegal and unconstitutional but subversive of the rule of law in every material particular.
In the case of Chief Gani Fawehinmi v. The President, Federal Republic of Nigeria & Ors. (2007) 14 NWLR (PT 1054) 275 the Court of Appeal declared that the payment of the annual salary and allowances of two ministers to wit: Dr. (Mrs.) Ngozi Okonjo-Iweala and Ambassador Adeniyi in American dollars by the Olusegun Obasanjo Administration was illegal and unconstitutional. As long as the decision of the Court of Appeal on the subject matter has not been set aside the Central Bank of Nigeria cannot be allowed to treat it with flagrant contempt by paying dollars to any tier of government.
It is also pertinent to note that Section 15 of the Central Bank of Nigeria Act has provided that the unit of currency in Nigeria “shall be the Naira which shall be divided into one hundred kobo” while Section 20(1) thereof states that the currency notes issued by the Central Bank “shall be legal tender in Nigeria at their face value for the payment of any amount.”
We are therefore compelled to draw the attention of the Governor of the Central Bank and State Governments to section 20(5) of the CBN Act which provides:
“A person who refuses to accept the Naira as a means of payment is guilty of an offence and liable on conviction to a fine of N50,000.00 or 6 months imprisonment.”
In the light of the foregoing the official humiliation of the National Currency through the payment of statutory allocations in American dollars should be stopped forthwith.
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