A seven-member panel of justices presided over by Justice Inyang Okoro, heard arguments in the matter and consolidated the suits filed by the various states. The states in the case are Kaduna, Kogi, and Zamfara, and the 16 co-plaintiffs are Katsina, Lagos, Ondo, Ogun, Ekiti, Cross River, Sokoto, Jigawa, Rivers, Kano, Niger, Nasarawa, and Abia states.
Bayelsa and Edo states filed as co-defendants in support of the federal government's monetary policy and objection against the jurisdiction of the apex court to hear the suits.
The naira redesign and swap policy was introduced by the Central Bank of Nigeria (CBN) in 2019, with the aim of combating illicit financial flows and money laundering. The policy involves the introduction of new naira notes and the withdrawal of old notes, which the CBN argues are vulnerable to abuse.
The 16 states argued that the policy violates the provisions of the Constitution, specifically the exclusive powers of the National Assembly to regulate currency and coinage. They also contended that the CBN lacks the power to declare the old naira notes as invalid without the approval of the National Assembly.
The states further argued that the policy would cause them significant economic harm, as they have a large stock of the old naira notes in circulation, and the sudden withdrawal of these notes would create economic instability.
The federal government, however, argued that the CBN had the power to introduce the policy under Section 2(d) of the CBN Act, which gives the bank the power to issue and redeem currency notes.
The case has been closely watched by the business community and investors, who are concerned about the potential impact of the judgment on the economy. The outcome of the case could also have significant implications for the power balance between the federal and state governments.
All eyes will be on the Supreme Court as it delivers its much-awaited judgment on the case, which is likely to have far-reaching implications for the Nigerian economy and the country's political landscape.