A Kano State High Court has issued a perpetual injunction restraining the Central Bank of Nigeria (CBN) from withholding funds meant for the 44 Local Government Areas (LGAs) of the state.
The ruling follows a lawsuit filed by six applicants, including the Chairman of the Nigeria Union of Local Government Employees (NULGE), Ibrahim Muhd, along with Ibrahim Uba Shehu, Ibrahim Shehu Abubakar, Usman Isa, Sarki Alhaji Kurawa, and Malam Usman Imam. Represented by their counsel, Bashir Yusuf-Muhammad, they sought a court order preventing the withholding or delay of federal allocations essential for local governance.
The respondents in the suit included the Accountant-General of the Federation (AGF), the CBN, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), all 44 Kano LGAs, as well as UBA, Access Bank, and six other commercial banks.
Delivering the judgment, Justice Ibrahim Musa-Muhammad ruled in favor of the applicants, emphasizing that federal allocations must be disbursed to Kano LGAs as required by law.
Court Ruling and Constitutional Backing
Citing the Supreme Court’s decision in Attorney General of Abia State & 35 Others (Suit No. SC/CV/343/2024) and the Kano State Local Government Council Electoral Laws 2022, Justice Musa-Muhammad stated:
The AGF, CBN, and RMAFC are legally obligated to release monthly allocations to the 44 LGAs, as they are recognized as democratically elected councils.
Withholding these funds violates the fundamental rights of Kano residents under Sections 33, 42, 43, 44, 45, and 46 of the 1999 Constitution (as amended), as well as Articles 13, 19, 22, and 24 of the African Charter on Human and Peoples’ Rights.
The exclusion of Kano LGAs from federation allocations breaches Section 162(3) of the 1999 Constitution.
Legal Arguments
Counsel for the applicants, Yusuf-Muhammad, urged the court to dismiss the respondents’ counter-affidavits and uphold the relief sought by his clients.
Counsel for the 44 LGAs, Ibrahim Isa-Wangida (representing Eyitayo Fatogun, SAN), did not oppose the application, emphasizing that local government allocations should not be withheld.
However, CBN’s counsel, Ganiyu Ajape, filed a notice of preliminary objection on Nov. 14, 2024, arguing that the court lacked jurisdiction to hear the case. He urged the court to strike out CBN’s name from the suit.
Similarly, representatives for UBA, Keystone Bank, and GTBank also requested their clients’ names be removed from the case, with a request for substantial costs.
This ruling reinforces the constitutional rights of local governments to receive their due federal allocations without interference, setting a significant precedent for financial autonomy at the grassroots level.
