The Federal Government of Nigeria and the Nigerian Financial Intelligence Unit (NFIU) have emerged victorious in a legal battle against the Nigerian Governors Forum over financial autonomy from the Local Government joint account.
Justice Inyang Ekwo of the Federal High Court delivered the ruling in favour of the Federal Government on Monday, upholding the NFIU’s guidelines aimed at curbing crime vulnerabilities created by cash withdrawals from local government accounts.
“We are pleased with the judgement because it will ensure that funds are available for governance responsibility at the local level,” said Mr Modibbo Tukur, Director/CEO of NFIU. “The judgement will also ensure that all transactions on Local Government funds are disclosed to the ICPC and EFCC 100% and will be reported continuously.”
The NFIU’s guidelines, issued in June 2019, advised banks not to honour transactions from joint accounts and reduced cash withdrawal from local government accounts to N500,000 daily. The move was aimed at improving local security and ensuring that funds are channelled effectively.
“The judgement is a victory for the Federal Government’s efforts to protect both states and local governments,” said Mr Tukur. “We are committed to ensuring that funds are used for the benefit of the people, and this judgement will help us achieve that.”
The ruling is seen as a significant milestone in the fight against corruption and financial mismanagement in Nigeria.