CurrentReport Blog In a recent development, the Federal High Court in Abuja has made a significant ruling regarding a lawsuit challenging loans granted to the Federal Government of Nigeria under the Ways & Means. The suit, filed by Justus Edim against the Federal Government, Central Bank of Nigeria (CBN), and Debt Management Office (DMO), sought to contest the legality of these loans.
Presiding over the case, Justice James Omotosho upheld the argument presented by Kofo Abdusalam Alada, the CBN Director of Legal Services, affirming the CBN’s authority to grant such loans. Justice Omotosho also acknowledged the CBN’s prerogative to allow repayment through securitization, citing Section 38 of the CBN Act.
Crucially, the court emphasized that the CBN, being the sole investor, would not trigger inflation through securitization. Furthermore, it pointed out the lack of credible evidence presented by the plaintiffs to substantiate any breaches by the CBN and the DMO in the securitization process.
Earlier in the proceedings, the court questioned the standing of the plaintiffs, who claimed to represent 220 million Nigerians, highlighting their failure to demonstrate a mandate from the people or a vested interest surpassing that of an average citizen in the matter of loan securitization.
Expressing disdain for what it termed as “busybodies,” the court condemned the frivolous use of judicial resources, urging restraint against individuals rushing to court without legitimate cause.
