Kano Times

December 7, 2025

Court restrains CBN, others from withholding Kano LG allocation

A Kano State High Court on Monday issued an order of perpetual injunction restraining the Central Bank of Nigeria (CBN) from withholding funds from the Federation Account meant for the 44 Local Governments in the state.  

The applicants are the Chairman of NULGE, Ibrahim Muhd; Ibrahim Uba Shehu; Ibrahim Shehu Abubakar; Usman Isa; Sarki Alhaji Kurawa; and Malam Usman Imam.

The applicants, through their counsel, Mr. Bashir Yusuf-Muhammad, filed a motion ex parte dated Nov. 1, seeking the court’s intervention to restrain the respondents from withholding or delaying allocations essential for local governance in the state.

The respondents are the Accountant-General of the Federation (AGF), the CBN, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), the 44 Kano Local Governments, UBA, Access Bank, and six other commercial banks.

Delivering the judgment, Justice Ibrahim Musa-Muhammad held that the applicants had established their case.

“I resolve in the affirmative that all the reliefs sought by the applicants are granted as follows:

“By the decision of the Supreme Court of Nigeria in Suit No. SC/CV/343/2024, *Attorney General of Abia State and 35 others,*

“The Kano State Local Government Council Electoral Laws 2022, the AGF, CBN, and RMAFC are under a duty to disburse monthly allocations to the 44 LGAs as democratically elected Local Government Councils.

“A declaration that withholding these allocations would amount to a breach of the fundamental rights of the residents and 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),

“Articles 13, 19, 22, and 24 of the African Charter on Human and Peoples’ Rights. The AGF, CBN, and RMAFC must not exclude the 44 LGAs from 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).”

Earlier, counsel to the applicants, Mr. Yusuf-Muhammad, urged the court to dismiss the respondents’ counter-affidavit and grant the applicants their reliefs.

Counsel to the 44 Local Governments, Ibrahim Isa-Wangida, holding brief for Eyitayo Fatogun, SAN, did not oppose the plaintiff’s application, adding that the disbursement of LG allocations should not be truncated.

Responding, counsel to the CBN, Mr. Ganiyu Ajape, filed a notice of preliminary objection dated Nov. 14, 2024, pursuant to Order 8, Rules (1) and (2) of the Fundamental Rights (Enforcement Procedure) Rules. He urged the court to strike out the CBN’s name in the suit, arguing that the court lacked jurisdiction to entertain the matter and should not grant the applicants’ reliefs.

Counsel to United Bank for Africa, Keystone Bank, Mr. A.B. Emmanuel, and counsel to Guaranty Trust Bank, holding brief for Mr. Faruk Asekome, urged the court to strike out their clients’ names with substantial costs.

“My Lord, there is no reasonable cause of action disclosed against our banks. We have no role in the disbursement of Local Government allocations,” Emmanuel argued.

(NAN)

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