A Kano State High Court, on Monday, issued an order of perpetual injunction restraining the Central Bank of Nigeria from withholding funds from the Federation Account to the 44 local government areas of the state.
The applicants had, through their counsel, Mr Bashir Yusuf-Muhammad, filed a motion ex parte, dated November 1, 2024, seeking the court to restrain the respondents from withholding or delaying allocations meant for LGs in Kano State.
The applicants included the Chairman of the Nigeria Union of Local Government Employees, Ibrahim Muhd, and others, filed a motion ex parte on November 1, 2024, seeking to restrain the respondents from withholding or delaying essential allocations for local governance in the state.
Among the respondents were the Accountant-General of the Federation, the Revenue Mobilisation Allocation and Fiscal Commission, the Kano State Independent Electoral Commission, 44 Kano LGs, UBA, Access and six other commercial banks.
The PUNCH reports that there had been a delay in the direct transfer of monthly allocations to local government areas in Nigeria, despite the Supreme Court order of July 11, 2024, granting financial autonomy to local government areas in the country.
The Presidency also announced that direct allocations to the councils would begin in January.
In his judgment, Justice Ibrahim Musa-Muhammad held that the applicants had proven their case beyond reasonable doubt.
“By the decision of the Supreme Court of Nigeria in suit No SC/CV/343/2024 vs Attorney General of Abia State and 35 others and by 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 LGs as democratically elected 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).
“Articles 13, 19, 22 and 24 of the African Charter on Human and Peoples Rights for the AGF, CBN and RMAFC to exclude the 44 Local Government Areas in the distribution from funds accruing from the Federation Account in line with Section 162(3) of the 1999 Constitution of the Federal Republic of Nigeria (as amended).”
Earlier, the counsel for the applicants, Yusuf-Muhammad, urged the court to discountenance the respondents’ counter affidavit and grant the applicants reliefs.
Counsel for the 44 local government areas, Ibrahim Isa-Wangida, holding brief for Eyitayo Fatogun (SAN), did not oppose the plaintiff’s application, as he argued that the disbursement of LG allocations should not be truncated.
Counsel for the CBN, Mr Ganiyu Ajape, filed a notice of preliminary objection, dated November 14, 2024, pursuant to order 8 rules (1)(2) of the fundamental rights.
He urged the court to strike out the name of the CBN in the suit for lacking jurisdiction to entertain the matter.
Counsel for the UBA, Keystone Bank, Mr A B Emmanuel and also a counsel for Guarantee Trust Bank, holding brief for Mr Faruk Asekome, urged the court to strike out their client’s name with a substantial cost.
“My Lord, there is no reasonable cause of action disclosed against our bank. We have no role in the disbursement of local government allocations,” Emmanuel said.