A Kano State High Court has issued an order of perpetual injunction, preventing the Central Bank of Nigeria (CBN) from withholding funds from the Federation Account to the 44 local governments of the state.
In a judgment on Monday, the CBN was ordered to disburse funds to the local governments.
The applicants, which include the Chairman of NULGE, Ibrahim Muhd, and others, filed a motion ex parte on November 1, seeking to restrain the respondents from withholding or delaying essential allocations for local governance in the state.
The respondents include the Accountant-General of the Federation (AGF), CBN, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), and several commercial banks.
The judgement
Delivering the judgment, Justice Ibrahim Musa-Muhammad affirmed that the applicants had established their case, granting all the reliefs sought.
- He emphasized that based on the decision of the Supreme Court of Nigeria in suit No SC/CV/343/2024 Attorney General of Abia State and 35 others, the AGF, CBN, and RMAFC are duty-bound to disburse monthly allocations to the 44 Local Government Areas as democratically elected councils.
- He added that withholding these allocations would breach the fundamental rights of the residents, as guaranteed under the 1999 Constitution of the Federal Republic of Nigeria (as amended) and the African Charter on Human and Peoples Rights.
“By the decision of the Supreme Court of Nigeria in suit No SC/CV/343/2024 Attorney General of Abia State and 35 others.
“The Kano State Local Government Council Electoral Laws 2022, the AGF, CBN, and RMAFC are under a duty to disburse monthly allocations to the 44 LGAs as democratically elected Local Government Councils.
“A Declaration that withholding these allocations would amount to a breach of the fundamental rights of the residents, inhabitants in the 44 Local government Councils, as guaranteed under Sections 33, 42 and 43,44, 45 and 46 of the 1999 Constitution of the Federal Republic Of Nigeria (As Amended).”
Counsel to the applicants, Bashir Yusuf-Muhammad, urged the court to discountenance the respondents’ counter-affidavit and grant the applicants reliefs. Counsel to the 44 Local Governments, Ibrahim Isa-Wangida, did not oppose the application, stating that the disbursement of LG allocations should not be disrupted.
What you should know
In response, CBN’s counsel, Ganiyu Ajape, filed a preliminary objection on November 14, 2024, arguing that the court lacked jurisdiction to entertain the matter and should not grant the applicants’ relief.
- Meanwhile, counsel to United Bank of Africa, Keystone Bank, and Guarantee Trust Bank, urged the court to strike out their clients’ names with substantial cost, arguing that the banks had no role in the disbursement of Local Government allocations.
- There has been a delay in the direct transfer of monthly allocations to Local Government Areas in Nigeria despite the Supreme Court order granting financial autonomy to LGAs in the country.
- The CBN had ordered all LG chairmen to set up a dedicated account for easy flow of the allocation from January 2025.
Local councils in Nigeria are supposed to begin receiving direct allocations from the Federation Account starting January 2025, in line with the Supreme Court’s July 11 ruling granting financial autonomy to local governments, however, it did not take effect as planned.
