Kano Court Bars CBN from Withholding LG Funds

A high court in Kano State has issued a permanent injunction restraining the Central Bank of Nigeria (CBN) from withholding funds allocated to the 44 local government areas (LGAs) of the state.

Justice Ibrahim Musa-Muhammad delivered the ruling on Monday after an ex parte motion filed on November 1 by the National Union of Local Government Employees (NULGE), Ibrahim Muhammed, and five others. The applicants sought to prevent the respondents from delaying or withholding allocations crucial to local governance.

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 commercial banks such as United Bank for Africa and Access Bank.

In November, the court had granted an interim order preventing the CBN and AGF from withholding funds. In his final judgment, Justice Musa-Muhammad ruled in favor of the applicants, affirming that they had established their case.

“The AGF, CBN, and RMAFC are duty-bound to disburse monthly allocations to the 44 LGAs as democratically elected councils,” the judge ruled, emphasizing that withholding the funds would violate the fundamental rights of residents.

Citing sections 33, 42, 43, 44, 45, and 46 of the 1999 Constitution, as well as Articles 13, 19, 22, and 24 of the African Charter on Human and Peoples’ Rights, the court reinforced the constitutional requirement that local government funds be disbursed without interference.

Legal analysts and stakeholders in Kano welcomed the ruling as a landmark decision. NULGE Chairman Ibrahim Muhammed hailed it as a victory for grassroots governance, stating, “This ruling ensures that local governments receive their rightful allocations without political or bureaucratic interference.”

Senior legal practitioner Barrister Amina Yusuf described the judgment as “a reinforcement of the principle of fiscal federalism,” stressing that local government allocations are a constitutional right, not a privilege.