FG’s N5bn for each state and the FCT to enable them to procure food items for distribution to the poor in their respective states has been described as diversionary that will not solve the economic crisis in the country.
Human rights activist and Senior Advocate of Nigeria (SAN), Femi Falana stated this when he appeared as a guest on the Channels Television programme, Sunrise Daily, on Friday, August 18, 2023.
He argued that the FG’s measures were diversionary. “They are temporary measures. Some of them are quite diversionary and the people in government have not addressed the root of the crisis, which is the dollarisation of the economy.
READ ALSO: Adeleke denies withdrawing N5bn from Osun accounts
“Whatever palliatives that are announced will be eaten up by the dollarisation of the economy.”
He also stated that he has taken legal action against the Central Bank of Nigeria (CBN) at the Federal High Court over its decision to float the naira, describing it as illegal.
The human rights lawyer said, “There’s no provision for floating the naira. It’s illegal. You say, ‘The value of the naira will be determined by market forces.’ That is not there in the law,” he said.
He noted that Section 20(1) of the CBN Act provides that the only legal tender in Nigeria shall be the currency notes issued by the Central Bank: “only the naira.”
READ ALSO: Sanwo-Olu implements medical palliatives
Section 20 (5) of the Act also provides that anybody who spends any other currency in Nigeria without the approval of the central bank has committed an offence “and shall be prosecuted”, he explained, adding, “The penalty is six months’ imprisonment.”
Falana argued further that as long as government officials are not prepared to strengthen the naira and make it the only legal tender in Nigeria, “we’re not going to go far”.
On June 14, 2023, the CBN announced the unification of all segments of Nigeria’s foreign exchange market, consolidating all windows into one.
This action was part of a series of immediate changes aimed at improving liquidity and stability in the Nigerian Foreign Exchange (FX) Market.
The CBN’s decision to float the currency and unify the country’s multiple exchange rates has been praised by the organized private sector, financial experts, and economists.
They believe this move will bring transparency and stability to the forex market, as well as attract more foreign investment and capital inflow into the economy.