The Federal High Court sitting in Abuja has dismissed a suit instituted against the cash-less policy initiative of the Central Bank of Nigeria.

In a suit filed on behalf of eleven Riverine Communities namely, Akpakpa, Ogidigben, Madagho, Ijalla, Kantu, Omadino, Ogheye, Dhege, Ajudaibo, Obaghoro and Ikoghoro, all in the Delta State, challenging the policy which restricted cash withdrawals and lodgments to a daily limit, the judge, Honourable Justice Balkisu Bello Aliyu held that “the policy directive issued by the respondents, the Central Bank of Nigeria and its Governor does not contravene the fundamental right of the applicant under section 44(1) of the Constitution of Nigeria as amended or under any section in chapter IV of the said constitution.”

Justice Aliyu also stated that “the applicant is not obliged to transact banking business with any bank at all. But where he decides to do so, he must comply with any regulations the respondents issued for the regulation of that sector.” The judge therefore, declared that she found no merit on this suit and it was dismissed accordingly.

The judge further ruled “that in as much as the Government will grant licences for the establishment of banks and other financial institutions for the benefit of its people, the choice of whether or not to make use of such institutions is entirely the discretion of the people in other words, it is up to any person (corporate or individual) citizen or not living in Nigeria to decide to lodge his money in any bank or financial institutions.

The individual or corporate transaction with their banks is a civil contract or agreement between the customers and their banks or financial institution. Right to banking or right to transact banking business is not one of the fundamental rights protected by chapter IV of the Nigeria’s constitution of the African Charter on Human and Peoples Rights.”

It would be recalled that following the introduction of the cash-less policy by the CBN, one Barrister Ayiri Emami, acting on behalf of himself and indigenes of eleven Riverine Communities of Delta State approached the court to challenge the policy praying that: 1) the limit imposed by the Bank was an infringement of their fundamental human rights; 2) the policy directive issued by the Bank and its Governor to all financial institutions in Nigeria to charge N100.00 for every N1000.00 withdrawn was excessive, punitive, and a breach of the fundamental rights of the applicants guaranteed under the constitution and; a perpetual injunction restraining the Bank from implementing the policy.

The CBN, in response to the prayers, affirmed that it issued policy directives to all financial institutions limiting the withdrawals and lodgements as claimed by the applicants but however stated that banks and other financial institutions were also directed to advise their customer to use alternative payments channels available to them, such as the automated teller machines (ATMS), cheques clearance and cards, among others. And that no one was expressively or impliedly deprived of the right to own or use money deposited in any bank or financial institution.

The CBN further stated that “the policy is aimed at reducing high use of cash, moderate the cost of cash management and encourage the use of electronic payment channels.”

The court in a considered ruling, held that the policy directive issued by the Bank and its Governor did not contravene the fundamental rights of the applicants under section 44 of the constitution of the Federal Republic of Nigeria, as amended or under any section in chapter IV of the Nigerian Constitution 1999 (as amended). The court therefore dismissed the suit.