In a courtroom twist that could reshape public access to financial information, the Central Bank of Nigeria (CBN) suffered a setback as the Court of Appeal in Abuja ruled against its attempt to dismiss a case seeking transparency over demonetized coins from 2017 to 2020.
The appeal, brought forward by a civil society group known as Lawyers Network Against Corruption Ltd/GTE, sought a judicial review of the records that the CBN has been reluctant to disclose.
The case originated from a request made under the Freedom of Information Act (FOIA), 2011, aimed at uncovering critical details about Nigeria’s financial operations, including the total stock of demonetized coins, their disposal, and potential beneficiaries. The CBN’s resistance to this transparency push triggered legal battles that culminated in Friday’s decision.
Representing the civil society group, lawyer Ezenwa Adumnu argued that the public had the right to know the fate of demonetized coins, particularly after the CBN publicly invited bids for these coins in a 2016 newspaper advertisement. Adumnu emphasized that his client submitted a formal FOIA request in 2021, demanding comprehensive records of the coins as of March 2017 and July 2020. When the CBN failed to provide a response, legal action followed.
Initially, the Federal High Court dismissed the suit on technical grounds, asserting that the applicant failed to obtain prior permission to proceed with the case. However, the Court of Appeal found this ruling to be erroneous. Justice Abang, delivering the judgment, clarified that the FOIA does not require such preconditions for judicial review when a public institution refuses to release requested information. According to him, imposing additional hurdles on the applicant would contravene the statute’s intent to promote transparency and accountability.
The CBN, represented by lawyer Emeka Etiaba SAN, sought to defend its position by questioning the procedural approach of the applicant. Etiaba argued that the case constituted an abuse of court processes, framing the suit as a deliberate attempt to embarrass the apex bank. He also insisted that the applicant’s failure to follow established rules made the case untenable.
Despite these arguments, the Court of Appeal sided with the civil society group. Justice Abang stated unequivocally that the applicant had acted within its legal rights. The court not only overturned the Federal High Court’s dismissal but also ordered the Chief Judge of the Federal High Court to reassign the case to another judge for further review.
This legal development underscores the challenges surrounding financial transparency in Nigeria, especially regarding the management and disposal of currency deemed unfit for circulation. Under the CBN Act, the destruction of such currency is mandated to occur under strict security, with the bank historically disposing of billions of naira in demonetized coins and notes. For example, in 2020 alone, ₦698.48 million worth of unfit notes were destroyed.
Friday’s ruling is being celebrated as a victory for transparency advocates. The decision sends a strong message to public institutions about their obligations under the FOIA, reinforcing that citizens and civil groups have the right to seek accountability from government bodies without unnecessary barriers.
The case will now return to the Federal High Court, where the reassigned judge will examine the merits of the original request. The outcome could set a significant precedent for public access to financial records in Nigeria, holding powerful institutions accountable while fostering greater public trust. Whether the CBN will comply or continue to resist remains to be seen, but the court’s decision marks a pivotal moment in the fight for financial transparency.
