Court stops govs from withdrawing LG funds

A Federal High Court in Abuja yesterday asked the 36 state governors to comply with a directive by the Nigerian Financial Intelligence Unit restraining them from withdrawing funds from local government accounts.

Justice Inyang Ekwo, according to a statement by NFIU spokesman, Ahmed Dikko, ruled that governors had no locus stand to spend funds allocated local government areas since there are three tiers of government.

NFIU Director, Modibbo Tukur, said with the judgment, “all transactions on local government funds will be disclosed to ICPC and EFCC 100% and will be reported continuously.’’

The NFIU had, in 2019, issued a guideline on the withdrawal of funds allocated to the 774 local government areas recognized by the 1999 constitution.

Tukur had said the guideline was aimed at curbing crime vulnerabilities created by cash withdrawals from local government accounts by various state governments.

He had cautioned all banks not to honour transactions from joint accounts.

He had also directed that the state/local government joint accounts be used only for receiving funds and subsequently transferring them to local government accounts only.

But later, the Nigerian Governors’ Forum had gone to court, praying that the Federal Government and the NFIU be restrained from interfering with state government powers to initiate transactions on local government joint accounts.