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BusinessKano

Kano High Court Stops CBN From Withholding LG Funds

Deji Ogunsola
Last updated: February 18, 2025 3:24 pm
By Deji Ogunsola
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A high court in Kano State has issued a permanent order restraining the Central Bank of Nigeria, CBN, from withholding funds allocated to the 44 local government areas of the state.

The ruling, delivered by Justice Ibrahim Musa-Muhammad, came after an ex parte motion filed on November one by the National Union of Local Government Employees, Ibrahim Muhammed, and five others.

The motion sought to prevent the respondents from withholding or delaying allocations essential for local governance.

In November, the court issued an interim order preventing the CBN and AGF from withholding funds for the 44 LGAs pending the determination of the suit.

 Delivering his final judgment, Justice Musa-Muhammad ruled in favor of the applicants, affirming that they had established their case.

“A declaration that withholding these allocations would amount to a breach of the fundamental rights of the residents, inhabitants in 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),” the ruling stated.

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Justice Musa-Muhammad also referenced the African Charter on Human and Peoples’ Rights, noting that excluding the 44 LGAs from the federation account distribution contradicts its provisions.

“It would be wrong according to Articles 13, 19, 22, and 24 of the African Charter on Human and Peoples’ Rights for the AGF, CBN, and RMAFC to exclude the 44 LGAs in the distribution of funds accruing from the Federation Account, in line with Section 162(3) of the 1999 Constitution of the Federal Republic of Nigeria (as amended),” he said.

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Deji Ogunsola
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