Written by: Wisdom Meni Adike Esq. (Junior Gani)
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It came as a shock to Nigerians, on the 5th day of February, 2021. When the Central Bank of Nigeria issued a notice to all banks and other financial institutions within the Nigerian State, on the following:
1. That henchforth no bank or other financial institution should transact or do any crypto currency transaction with any customer.
2. That Henchforth all Deposit Money Banks and other financial institutions must identify all persons dealing on crypto currency.
3. That any Customer or entities found dealing on crypto currency with their pay system, are closed immediately.
The questions begging for legal answers, are as follows:
1. Is the Central Bank of Nigeria or Banks/other financial institutions vested with the powers to close or freeze any customer's Account without an Order of Court?
2. Can Crypto currency Investment or the party who invest in it, be viewed as a criminal, as defined by our Criminal Laws?
3. Does the powers of the Central Bank of Nigeria overide the Provisions of Chapter 4 of the 1999 Constitution of the Federal Republic of Nigeria (As Amended)?
4. Does the ownership of any moveable property rest within the Control of the Central Bank of Nigeria or the Federal Government?
QUESTION 1
"Is the Central Bank of Nigeria or Banks/other financial institutions vested with the powers to close or freeze any customer's Account without an Order of Court?"
The answer to the above question begging for an answer, is a big NO. This is hinged on the fact that no financial parastatal of Government or investigative agency of Government, is vested with the powers to close the account of any Nigerian without an Order of a Court of Competent jurisdiction.
It was also in this similar vein, the Court knowing it powers once stated "that the powers to freeze any bank account is solely rested with the Court"
If the Court can be this firm on the freezing of accounts, then what would be the Court's position where the account of a citizen is closed without an Order emanating from the Court?
I leave you my readers to think.
QUESTION 2
"Can Crypto Currency Investment or the party who invest or transact in it, be viewed as a criminal, as defined by our Criminal Laws?"
It is well establish law and precedent, that once an act do provide for such act to be criminal in any of the laws of the Nigerian State. Such act cannot be viewed by any institution of Government to be criminal, except the law provides so.
It was in this similar vein, the Provisions of Section 36 (12) 1999 Constitution of the Federal Republic of Nigeria (As Amended) stated this:
" Subject as otherwise provided by this Constitution, a person shall not be convicted of a criminal offence unless that offence is defined and the penalty therefor is prescribed in a written law, and in this subsection, a written law refers to an Act of the National Assembly or a Law of a State, any subsidiary legislation or instrument under the provisions of a law."
From the above provision citied, it goes to say that, once there is no law making act criminal. Such act cannot be given a criminal impression or personality in any way or manner, whether in a cooperate capacity or personal capacity.
QUESTION 3
"Does the powers of the Central Bank of Nigeria overide the Provisions of Chapter of the 1999 Constitution of the Federal Republic of Nigeria (As Amended)?"
The 1999 Constitution of the Federal Republic of Nigeria (As Amended) remains the number one law guiding the conduct of every Nigerian and institution of governance. Once the act of any of it organs conflicts with it, such act goes to a nullity in law.
Furthermore, it was in this similar vein Section 1(3) of the 1999 Constitution of the Federal Republic of Nigeria (As Amended) expressly stated it Supremacy over every law and institution of the Nigerian State.
The Central Bank of Nigeria erred by banning Crypto Currency, because of it directive to all banks/other financial institutions conflicts with the provisions of chapter 4 of the 1999 Constitution of the Federal Republic of Nigeria (As Amended), particularly Section 35(1), & 44(1) of the 1999 Constitution of the Federal Republic of Nigeria (As Amended).
The act of the Central Bank of Nigeria in all legal sphere, conflicts with the 1999 Constitution of the Federal Republic of Nigeria (As Amended), as stated above.
QUESTION 4
"Does the ownership of any moveable property rest within the Control of the Central Bank of Nigeria?"
It is the law that the ownership of any moveable property, rest with the owner of the property, it was in this smilar vein Section 44(1) of the 1999 Constitution of the Federal Republic of Nigeria, expressly stated thus:
44. (1) No moveable property or any interest in an immovable property shall be taken possession of compulsorily and no right over or interest in any such property shall be acquired compulsorily in any part of Nigeria except in the manner and for the purposes prescribed by a law that, among other things -
(a) requires the prompt payment of compensation therefore and
(b) gives to any person claiming such compensation a right of access for the determination of his interest in the property and the amount of compensation to a court of law or tribunal or body having jurisdiction in that part of Nigeria.
In furtherance to the firmness, with respect to the protection of Moveable properties of Nigerians, the Supreme Court of the Federal of Nigeria held thus:
In the case of ABUSOMWAN V. AIWERIOBA & ANOR. (1996) LPELR-62(SC) that:
"it is trite law that when one holds property beneficially owned by another person, the property remains that of its true owner and the holder is merely to account for such goods." Per Onu, J.S.C. (P.15, Paras.D-E)
From the above provisions of the law and judicial precedent set forth. The law is clear that neither the Federal Government of the Federal Republic of Nigeria or it agencies or arms of Government can hold the movable properties of any Nigerian without an order of Court.
CONCLUSION
The act of the Central Bank of Nigeria, is barbaric and violates the true essence of a democratic Nation, where the rights of her citizens must be respected in totality.
It is imperative at this point, that the Central Bank of Nigeria(CBN) reverse the said directive issued on the 5th day of February, 2021 for the interest of Justice and the respect of the rule of law.
Finally, I urge every law abiding Nigerian to challenge such decision legally within the ambit of the law, by approaching our Courts.
God bless Nigeria.
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