A federal High Court in Port Harcourt has adjourned for hearing
the case filed by Mr. Steve Elijah against the Central Bank of
Nigeria, Access Bank PLC, and Eco Bank Nigeria PLC.
Mr Elijah is challenging the three percent and two percent charges
directives by CBN for cash withdrawal and cash deposit into his
bank accounts.
The Plaintiff had approached the court to place an order
restraining the Defendants, their Agents, offices from enforcing
and deducting fees at the rate of three percent for any cash
withdrawal above five hundred thousand naira and two percent for
any cash lodgement into the Plaintiff bank account.
The Plaintiff in suit number FHC/PH/CS/211/2019 is praying the
court to determine whether the powers and functions of the 1st
Defendant under section 2 of the Central Bank of Nigeria Act 2007
and section 1 of the Financial Institution Act CAP B3 LFN 2004
extend to the 1st Defendant mandating and directing 2nd and 3rd
Defendant to impose and collect punitive charges.
The plaintiff is also praying the court to determine whether the
1st Defendant can validly mandate or direct the 2nd and 3rd
Defendants and other deposit money banks to charge customers
punitive fees for processing of withdrawals at the determinate rate
of three (3%) percent for any cash withdrawal above five hundred
thousand (500, 000.00) naira individual accounts, five (5%) percent
for any cash withdrawal above three million (3,000,000.00) naira
for corporate accounts and processing of lodgement at the
determinate rate of two (2%) percent for any cash lodgement above
five hundred thousand (500,000.00) naira individual accounts and
three percent (3%) for cash lodgement above three million
(3,000,000.00) naira for corporate accounts.
During the court proceeding, Counsel to the Plaintiff filed an
application urging the court for more time to respond to the
motions served on him by the 1st Defendant, which the court
granted.
Counsel to the 2nd Defendant also filed an application asking
for an extension of time to file a motion on notice and be able to
file a written address to support their motion.
The presiding Judge, Justice Isaq Mohammed Sani, after listening to
counsels in the matter, adjourned to 5th February 2020, for
originating summons.
Speaking to our reporter Tina Amanda, Asuk Ikpoko, Counsel to
the Plaintiff, said CBN does not have powers to direct Banks to
deduct a percentage from customers, adding that CBN as third party
is not privy to the contract between customers and bank
institutions.
“We are not contesting the fact that CBN has the powers under
the CBN Act and other financial institution Banks, but we are
saying that the powers of CBN to regulate banks is regulated by law
and CBN cannot act ultra varies and go above the power stipulated
by law”
On his part, Augustine Okafor, Counsel to CBN, said they are
waiting for the Plaintiff to respond to their motion.
The Human Rights-Based Approach to
Carbon Finance NOW ON SALE— Order Your Copy!!!
written By Professor Damilola S. Olawuyi, LL.B
(1st Class), BL
(1st Class), LL.M (Calgary), LL.M
(Harvard), DPhil (Oxford) Professor of Law and
Director, OGEES Institute, Afe Babalola University, Ado Ekiti. For
more information or to order your copies, please
contact Mr. Keji
Kolawole: [email protected][2] , Tel:
+234 81 40000 988[1]
Subscribe ToNairalaw News! References ^
The Human Rights-Based Approach to
Carbon Finance NOW ON SALE— Order Your Copy!!!
(www.cambridge.org) ^ [email protected]
(nairalaw.com)