The Federal High Court in Abuja has dismissed a suit seeking to prevent the Federal Government from securitising the N22.7 trillion Ways and Means loan it obtained from the Central Bank of Nigeria (CBN).
Justice James Kolawole Omotosho, ruled that the plaintiffs lacked the legal standing (locus standi) to institute the case.
He further stated that even if the plaintiffs had locus standi, they failed to provide sufficient evidence to prove their case.
Background
The plaintiffs, Justin Edim and Akinfenwa Akinwunmi, had sued President Bola Tinubu, the Federal Government of Nigeria, the Central Bank of Nigeria, the Ministry of Finance, the Debt Management Office, the National Assembly, and the Attorney General of the Federation.
They sought to prevent the conversion of the debt into a promissory note or any other form of security, such as treasury bills or bonds.
In December 2022, the Federal Government requested permission from the 9th National Assembly to scrutinize the debts it had incurred from the Central Bank over the years.
The plaintiffs claimed that the series of loans secured from the Central Bank had amounted to N23.7 trillion, and the government was planning to restructure the loans into a tradable form.
They argued that the government had secured various loans from the Central Bank under the Ways and Means provision of Section 38 of the CBN Act, contravening relevant laws that stipulate the total amount the government can borrow should not exceed five percent of the previous year’s revenue.
Court’s Decision
Justice Omotosho struck out the National Assembly’s name from the suit on the ground that the plaintiffs breached the condition of filing a pre-action notice on the legislature three months before filing the suit.
Regarding the plaintiffs’ locus standi, the judge ruled that although they claimed to have filed the matter on behalf of the masses, the instant case was not a fundamental enforcement rights suit.
He questioned whether any public forum was held or a poll conducted to gather opinions before commencing the action.
The judge held that the plaintiffs failed to show how the Ways and Means bill affected their rights personally, and thus, they had no right to file on behalf of Nigerians.
He further stated that even if the plaintiffs had locus standi, the exhibits attached to their court processes were not certified true copies, rendering them inadmissible as evidence.
Justice Omotosho deemed the suit speculative and full of rumours, expunging the exhibits from the court file. Consequently, the suit was dismissed for lack of locus standi.