Human rights activist and Senior Advocate of Nigeria (SAN), Femi Falana, has initiated legal proceedings against the Central Bank of Nigeria (CBN) at the Federal High Court, contesting the legality of the naira float decision.

Speaking on Channels Television's Sunrise Daily on August 18, 2023, Falana highlighted that the CBN is mandated by law to fix the exchange rate and that floating the naira is not supported by existing legislation.

Falana emphasized, "There’s no provision for floating the naira. It’s illegal."

He further explained that he had filed a case at the Federal High Court against the CBN based on Section 16 of the Central Bank Act, which obliges the CBN to set the naira's exchange rate.

Focusing on Sections 20(1) and 20(5) of the CBN Act, Falana argued that only naira is recognized as legal tender in Nigeria, and any use of another currency without CBN approval is an offense punishable by law.

Regarding the Federal Government's allocation of N5 billion to each state and the FCT for food distribution, Falana criticized the measures as diversionary. He believed the root issue of dollarization was not being addressed.

In June 2023, the CBN unified Nigeria's foreign exchange market and removed the rate cap on the naira, allowing a free float against global currencies. While praised by some for improving market stability, this policy has faced criticism for contributing to rising costs.