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CBN Restricted from Withholding Kano Local Government Funds
A Kano State High Court has issued a perpetual injunction restraining the Central Bank of Nigeria (CBN), the Accountant-General of the Federation (AGF), and the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) from withholding funds allocated to the 44 local government areas (LGAs) in Kano State.
The case was brought forward by applicants including Ibrahim Muhd, Chairman of the National Union of Local Government Employees (NULGE), and others, who sought to prevent the withholding or delay of essential allocations meant for local governance. The respondents in the case comprised the AGF, CBN, RMAFC, the 44 LGAs, and several commercial banks.
In his judgment, Justice Ibrahim Musa-Muhammad affirmed that the applicants had established their case, granting all the reliefs sought. He emphasized that, based on the Supreme Court’s decision in suit No. SC/CV/343/2024, the AGF, CBN, and RMAFC are obligated to disburse monthly allocations to the 44 LGAs as democratically elected councils. The judge further declared that withholding these allocations would violate the fundamental rights of the residents in these LGAs, as guaranteed under Sections 33, 42, 43, 44, 45, and 46 of the 1999 Constitution of Nigeria (as amended).