Court Rules Against Nigeria’s Central Bank’s Levies On Deposits, Withdrawals In Abuja, Six States

A Federal High Court sitting in Awka, Anambra State, has dominated in opposition to the cashless coverage of the Central Bank of Nigeria (CBN) in six states and the Federal Capital Territory (FCT), the place financial institution clients depositing or withdrawing a sure amount of money are made to pay monetary levies. 

The imposed levies are a sure share of the quantity deposited or withdrawn.

Court Rules Against Nigeria's Central Bank's Levies On Deposits, Withdrawals In Abuja, Six States 2

The judgment adopted a swimsuit filed by an Anambra State-based authorized practitioner, Chijioke Ifediora, in opposition to CBN. 

He argued that the coverage was certainly discriminatory and that it violates Section 42 of the 1999 Constitution in Anambra, Abia, Lagos, Ogun, Kano, Rivers, and FCT, the place the apex financial institution has been imposing the discriminatory coverage, Daily Trust stories. 

Ifediora stated, “There is no constitutional foundation/pillar for such discriminatory policy nor is any statutory enabler for such biased circular.”

However, the counsel for the CBN, Jackson Iragunima, in his submission contended that the coverage was not discriminatory. 

Iragunima stated it’s for the well-being of the nation.

He additionally famous that the plaintiff didn’t have the authority of all of the residents and company establishments residing within the stated states and FCT to institute the motion on their behalf.

But in his ruling, the presiding choose, Justice N.O. Dimgba agreed with the plaintiff that the CBN coverage was discriminatory and that it offends Section 42 of the 1999 structure (as amended).

“I have reviewed the policy document as contained in the website of the defendant (CBN) as well as the implementing circulars and I am unable to see any rational and objective justification for the selective imposition of financial penalties against residents of the named six states and the FCT for making cash withdrawals and lodgements/deposits over the stipulated threshold,” the choose stated.

He additionally famous that the coverage, fairly than promote a cashless financial system, it encourages the proliferation of money by merchants who fairly hold their money than lodge it and pay monetary levies of two% and three% of the quantity.

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Court Rules Against Nigeria's Central Bank's Levies On Deposits, Withdrawals In Abuja, Six States

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