On Thursday, the Federal High Court in Abuja threw out a lawsuit that sought to prevent the Federal Government from securitising the N22.7 trillion Ways and Means loan support provided by the Central Bank of Nigeria.
In a judgment, Justice James Kolawole Omotosho dismissed the case on the grounds that the plaintiffs did not have the legal standing to bring the lawsuit. The judge also found that even if they had the standing, they failed to substantiate their claims.
The plaintiffs, Justin Edim and Akinfenwa Akinwunmi, named President Bola Tinubu, the Federal Government of Nigeria, the Central Bank of Nigeria, and the Ministry of Finance as the first to fourth defendants in their lawsuit.
Among others, the suit with the reference number FHC/ABJ/CS/1286/2023 also listed the Debt Management Office (DMO), the National Assembly, and the Attorney General of the Federation as the fifth to seventh defendants.
Through their legal representative, Victor Opatola, the plaintiffs argued that they initiated the legal action on behalf of themselves and other Nigerian citizens. They specifically requested the court to halt the conversion of the debt into a promissory note or any other form of future payment, or securitisation through the issuance of treasury bills, bonds, or other securities.
In December 2022, the Federal Government sought permission from the 9th National Assembly to securitise the accumulated debts from the Central Bank over the years.
The plaintiffs claimed that the total loans obtained from the Central Bank amounted to N23.7 trillion and that the government planned to restructure the loans for trading purposes.
They further alleged that the government had consistently secured various loans from the Central Bank using the Ways and Means provision of Section 38 of the CBN Act, exceeding the stipulated borrowing limit of five per cent of the government’s previous year’s revenue.
The plaintiffs contended that the decision to convert the N22.7 trillion Ways and Means debt into bonds was in violation of the CBN Act.
They asked the court to declare that securitising the debt would negatively impact them and millions of Nigerians, devalue savings, and push more Nigerians below the poverty line.
In his ruling, Justice Omotosho struck out the National Assembly from the suit, citing the plaintiffs’ failure to give a three-month pre-action notice to the legislature as required.
Regarding the plaintiffs’ legal standing, the judge remarked that the lawsuit did not meet the criteria for a fundamental enforcement rights suit, questioning the claim that it was brought on behalf of the public.
Justice Omotosho emphasized that the plaintiffs did not demonstrate how the Ways and Means bill directly affected their rights, thus lacking the authority to represent Nigerians in this matter.
He also noted that the documents presented as evidence were not certified copies, highlighting the importance of adherence to legal procedures for document submission.
Dismissing the suit, Justice Omotosho emphasized the need for factual evidence and certified documentation in legal proceedings, disregarding unsubstantiated claims and speculative information.