A Kano High Court has issued a permanent order barring the Central Bank of Nigeria (CBN) from withholding funds allocated to the 44 local government areas (LGAs) in Kano State. This ruling, delivered by Justice Ibrahim Musa-Muhammad, follows an ex parte motion filed on November 1 by the National Union of Local Government Employees (NULGE) and other plaintiffs, who sought to prevent the delay or withholding of funds critical for local governance.
The court’s decision is seen as a significant victory for local governments and their residents, affirming that the Nigerian Constitution mandates the regular disbursement of these funds. In the ruling, Justice Musa-Muhammad emphasized that withholding the funds violates the constitutional rights of the citizens residing in the affected LGAs.
The case involved several respondents, including the Accountant-General of the Federation (AGF), the CBN, and the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), as well as commercial banks like United Bank for Africa and Access Bank. The court had previously issued an interim order in November, which prevented the withholding of funds until the case was resolved.
Justice Musa-Muhammad stated that local government funds should be disbursed to ensure the smooth operation of local governance. He also referenced both the Nigerian Constitution and the African Charter on Human and Peoples’ Rights, which guarantee the right to financial allocation for local governments without interference.
Following the judgment, legal experts and stakeholders in Kano have hailed the decision as a landmark one for grassroots governance. NULGE Chairman Ibrahim Muhammed called it a win for local governments, stressing that it would allow them to receive their rightful allocations without political or bureaucratic interference. Senior legal practitioner Barrister Amina Yusuf also described the ruling as a reinforcement of fiscal federalism, ensuring that local governments’ allocations are treated as a constitutional right.
