Stop CBN’s powers to void bank licences – Lawyer

An Abuja-based lawyer, Chibueze Maduka, has asked a Federal High Court in Abuja to void the powers of the Central Bank of Nigeria (CBN) to unilaterally cancel license of banks.

Maduka argues that section 127(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020, which provides that appeals on the CBN licence revocation shall lie from the special tribunal directly to the Court of Appeal, is unconstitutional, null and void for violating sections 6, 240, and 241 of the constitution.

He further asked the court to declare that the combined effect of sections 12(6), 126(1) and 127(1) of BOFIA 2020 amounts to an unconstitutional usurpation of judicial power and a breach of the doctrine of separation of powers guaranteed by the constitution.

He Further requested the court to issue an order of perpetual injunction restraining the Attorney-General of the Federation, the National Assembly of the Federal Republic of Nigeria and the CBN from relying on, enforcing or giving effect to the provisions of sections 12(6), 126(1) and 127(1) of the Banks and Other Financial Institutions Act, 2020, in any manner whatsoever.

According to Maduka, the action was brought in the public interest to challenge the constitutionality of certain provisions of the BOFIA 2020, which under sections 12(6), 126(1) and 127(1) undermine the judicial powers of the federation and the right to fair hearing and prohibits the courts from making restorative or declaratory orders where the CBN revokes the licence of a bank while vesting exclusive jurisdiction on the special tribunal for the enforcement and recovery of eligible loans.

While contending that the provisions offend section 6 of the Nigerian constitution in that it fetters, limits and ousts the jurisdiction of the court, the constitution does not permit the National Assembly to establish any tribunal or administrative body clothed with the inherent powers of a superior court of record.

No date has been fixed for the hearing.

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