A Federal High Court in Lagos on Thursday struck out a suit challenging the cashless policy of the Central Bank of Nigeria (CBN).

The judge, Akintayo Aluko, struck out the suit on grounds of incompetence, lack of proof, and absence of jurisdiction.

Victor Onyegbado, who sued, claimed the policy was unconstitutional, and that it subjected him to disabilities and restrictions. He argued the Bank did not subject other Nigerians to the same policy.

The plaintiff asked the court to make an order of perpetual injunction restraining the CBN from implementing the cashless policy, adding that its implementation violated Section 42 (1) (a) (b) of the Constitution.

The CBN, in 2019, initially rolled out the cashless policy in six states, with the plan to extend it nationwide after six months.

CBN’s legal team, led by Fabian Ajogwu, a Senior Advocate of Nigeria (SAN), opposed Onyegbado’s claims. They prayed the court to, among others, dismiss the suit for lack of jurisdiction.

Mr Ajogwu, a professor of Law, listed six grounds upon which he persuaded the court that there was no jurisdiction to entertain the plaintiff’s suit.

The judge upheld his argument.

He said that although the CBN had maintained that it implemented the policy in “good faith;” the plaintiff argued it is discriminatory and unjust.

“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.”

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The judge noted that the Black’s Law Dictionary defined ‘good faith’ 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 an unconscionable advantage.”

He added that the bank had “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 strengthening 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 Black’s 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.”

The judge said 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 or the foregoing, this issue is resolved in favour of the defendant against the plaintiff.”

The judge further said the plaintiff’s case lacks merit and substance and is “fundamentally infected with the virus of frivolity and meddlesomeness.

“This suit is accordingly struck out on grounds of incompetence, lack of proof, and absence of jurisdiction.”

Rtn. Victor Ojelabi

Ojelabi, the publisher of Freelanews, is an award winning and professionally trained mass communicator, who writes ruthlessly about pop culture, religion, politics and entertainment.