Court Bars CBN from Withholding Kano LG Allocations

Kano, Nigeria  —  A Kano State High Court has issued a perpetual injunction preventing the Central Bank of Nigeria (CBN) and other financial institutions from withholding funds allocated to the 44 Local Government Areas (LGAs) of Kano State from the Federation Account.

The ruling followed a legal challenge initiated by Ibrahim Muhd, Ibrahim Uba Shehu, Ibrahim Shehu Abubakar, Usman Isa, Sarki Alhaji Kurawa, and Malam Usman Imam, represented by their counsel, Bashir Yusuf-Muhammad. The applicants sought the court’s intervention to prevent any delays or restrictions on statutory allocations crucial for local governance.

The respondents in the case included the Accountant-General of the Federation (AGF), the CBN, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), the 44 Kano LGAs, and several commercial banks, including UBA and Access Bank.

Delivering the judgment, Justice Ibrahim Musa-Muhammad ruled in favor of the applicants, affirming that all requested reliefs were granted. He cited a Supreme Court decision in Attorney General of Abia State & 35 others (SC/CV/343/2024) and the Kano State Local Government Council Electoral Laws 2022, stating that the AGF, CBN, and RMAFC have a legal obligation to disburse monthly allocations to democratically elected Local Government Councils.

The court further declared that withholding these funds would constitute a violation of fundamental rights as enshrined in Sections 33, 42, 43, 44, 45, and 46 of the 1999 Constitution (as amended), as well as Articles 13, 19, 22, and 24 of the African Charter on Human and Peoples’ Rights.

During the proceedings, the applicants’ counsel urged the court to dismiss counterarguments from the respondents and uphold the petitioners’ demands. Counsel representing the 44 LGAs, Ibrahim Isa-Wangida, did not object to the application, affirming that local government allocations should not be obstructed.

However, CBN’s legal representative, Ganiyu Ajape, filed a preliminary objection requesting the court to remove CBN from the case, arguing that it lacked jurisdiction over the matter. Similarly, counsel for United Bank for Africa, Keystone Bank, and Guaranty Trust Bank requested the removal of their clients’ names from the suit with cost implications.

The ruling reinforces the legal obligation of federal institutions to ensure timely allocation of funds to local governments, upholding financial autonomy at the grassroots level.

By Taiwo Olatinwo. |February 18, 2025.