
A State High Court sitting in Kano on Monday issued a perpetual injunction restraining the Central Bank of Nigeria from withholding funds from the Federation Account meant for the 44 local governments in the state.
The applicants include the Chairman of NULGE, Ibrahim Muhd; Ibrahim Uba Shehu; Ibrahim Shehu Abubakar; Usman Isa; Sarki Alhaji Kurawa; and Malam Usman Imam.
Through their counsel, Mr Bashir Yusuf-Muhammad, the applicants filed an ex parte motion dated 1 November, seeking a court order to prevent the respondents from withholding or delaying allocations intended for local governance in the state.
The respondents include the Accountant-General of the Federation, CBN, the Revenue Mobilisation Allocation and Fiscal Commission, the 44 local governments in Kano State, UBA, Access Bank, and six other commercial banks.
Delivering judgment, Justice Ibrahim Musa-Muhammad held that the applicants had proved their case beyond reasonable doubt.
“I resolve in the affirmative that all the reliefs sought by the applicants are granted as follows: By the decision of the Supreme Court of Nigeria in suit No. SC/CV/343/2024, Attorney General of Abia State & 35 Others.
“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 LGAs as democratically elected Local Government Councils.
“A declaration that withholding these allocations would amount to a breach of the fundamental rights of the residents and inhabitants of the 44 local government councils, as guaranteed under Sections 33, 42, 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 prohibit the AGF, CBN, and RMAFC from excluding the 44 Local Government Areas from the distribution of funds accruing from the Federation Account in line with Section 162(3) of the 1999 Constitution (as amended).”
Earlier, counsel for the applicants, Yusuf-Muhammad, urged the court to dismiss the respondents’ counter-affidavit and grant the applicants’ reliefs.
Counsel for the 44 local governments, Ibrahim Isa-Wangida, holding brief for Eyitayo Fatogun, SAN, did not oppose the plaintiffs’ application, adding that LG allocations should not be withheld.
In response, counsel for CBN, Mr Ganiyu Ajape, filed a preliminary objection dated 14 November 2024, pursuant to Order 8, Rules (1)(2) of the Fundamental Rights Procedure.
Ajape urged the court to strike out CBN’s name from the suit, arguing that the court lacked jurisdiction to hear the matter and should not grant the applicants’ reliefs.
Counsel for United Bank for Africa and Keystone Bank, Mr A. B. Emmanuel, alongside counsel for Guaranty Trust Bank, holding brief for Mr Faruk Asekome, urged the court to remove their clients’ names from the suit and award them substantial costs.
“My Lord, there is no reasonable cause of action against our bank. We have no role in the disbursement of local government allocations,” Emmanuel argued.
Punch