A High Court in Kano State has issued an order permanently restraining the Central Bank of Nigeria (CBN) from withholding funds meant for the 44 local governments in the state.
The ruling, delivered on Monday by Justice Ibrahim Musa-Muhammad, followed a legal challenge by members of the National Union of Local Government Employees (NULGE), who argued that denying these allocations violated fundamental rights and constitutional provisions.
The applicants, led by NULGE Chairman Ibrahim Muhd and others, had sought the court’s intervention to prevent any delays in disbursing funds essential for local governance.
The respondents included the Accountant-General of the Federation (AGF), the CBN, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), and several commercial banks.
Justice Musa-Muhammad ruled in favor of the applicants, citing a Supreme Court decision (SC/CV/343/2024) that mandates the disbursement of monthly allocations to democratically elected local government councils. He declared that withholding these funds would violate constitutional rights, as well as the African Charter on Human and Peoples’ Rights.
Counsel for the applicants, Bashir Yusuf-Muhammad, urged the court to reject the respondents’ objections and ensure that local government funding remains uninterrupted.
The 44 local governments, represented by lawyer Ibrahim Isa-Wangida, supported the plaintiffs, stating that allocations should not be blocked.
However, CBN counsel Ganiyu Ajape filed a preliminary objection, arguing that the court lacked jurisdiction over the matter and requesting that the CBN’s name be removed from the suit.
Similarly, legal representatives for United Bank of Africa (UBA), Keystone Bank, and Guarantee Trust Bank contended that their clients played no role in the disbursement of funds and should not be involved in the case.
Despite these objections, the court upheld the applicants’ plea, ensuring that local government funds cannot be withheld or delayed.
The ruling is seen as a significant victory for local governance in Kano State, reinforcing the financial independence of local councils.