In a recent appearance on Channels Television’s Sunrise Daily on August 18, 2023, Femi Falana, a senior advocate and prominent public commentator in Nigeria, took the stage to express his concerns about the economic policies put forth by President Bola Tinubu. Falana’s critique primarily focused on the President’s measures aimed at addressing the country’s ongoing economic challenges.
Falana presented his argument against what he referred to as the “temporary and diversionary” economic measures implemented by President Tinubu. He particularly spotlighted the unification of the exchange rate and the provision of palliatives, asserting that these measures fail to target the core issues underlying the economic crisis. According to Falana, the root cause of Nigeria’s economic woes is the pervasive “dollarization” of the economy.
The senior advocate articulated his skepticism regarding the effectiveness of any palliative measures in light of the ongoing dollarization trend. He contended that until substantial efforts are directed towards strengthening the Nigerian naira and reestablishing it as the sole legal tender within the nation, substantial progress would remain elusive. Falana disclosed that he had initiated legal actions against the Central Bank of Nigeria, arguing that the bank’s practice of floating the naira was both illegal and unconstitutional.
Falana elaborated on his legal standpoint by referencing Section 16 of the Central Bank Act. This section, he explained, mandates the Central Bank with the responsibility of fixing and determining the naira’s exchange rate, rendering the act of floating the currency unlawful. He further pointed to Section 20 of the same Act, which explicitly designates the naira as the exclusive legal tender within Nigeria. Under this provision, engaging in transactions using any other currency without the Central Bank’s authorization is deemed an offense, with a potential penalty of six months’ imprisonment, as stipulated in Section 20 subsection 5 of the Act.
The legal expert voiced his dismay over the present state of affairs where properties are sold in foreign currencies, rents are collected in non-naira denominations, and certain educational institutions demand fees in foreign currencies. He underscored the disconcerting reality of importing goods—some of which are domestically produced—by procuring foreign currencies.
In conclusion, Falana’s critique of President Tinubu’s economic strategies hinges on the argument that a comprehensive overhaul of the nation’s economic framework is imperative to combat the persisting challenges. With his legal actions against the Central Bank, Falana is resolute in his belief that adhering to the provisions of the Central Bank Act could pave the way for a more robust economic foundation.
As the nation navigates its economic future, Falana’s perspective serves as a reminder that addressing the issue of dollarization might be instrumental in paving the way for more sustainable growth and development in Nigeria.
EmmanuelGeorgeNdoma (
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