In a landmark ruling, a High Court in Kano State has issued a permanent order restraining the Central Bank of Nigeria (CBN) from withholding funds allocated to the state’s 44 local government areas.
The judgment, delivered by Justice Ibrahim Musa-Muhammad, follows an ex parte motion filed last year by the National Union of Local Government Employees (NULGE) and five others. The motion sought to prevent federal agencies from withholding or delaying statutory allocations essential for local governance.
The respondents in the suit included the Accountant-General of the Federation, the CBN, the Revenue Mobilisation Allocation and Fiscal Commission, all 44 local government areas in Kano State, and several commercial banks.
Back in November 2024, the court had issued an interim order preventing the CBN and the Accountant-General of the Federation from withholding funds while the case was being heard. In his final judgment on Monday, Justice Musa-Muhammad ruled in favor of the applicants, affirming that they had successfully established their case.
This ruling is expected to have significant implications for local governance, ensuring that funds meant for grassroots development are disbursed without obstruction.
