State Governors Lose Court Case Against FG Seeking Financial Autonomy

State Governors Lose Court Case Against FG Seeking Financial Autonomy

  • Justice Inyang Ekwo of the Federal High Court of Nigeria has ruled against the Nigeria Governors Forum (NGF) in a case against the federal government
  • The suit according to reports was seeking financial autonomy from the local government joint account
  • Also included in the suit is the Nigerian Financial Intelligence Unit (NFIU) who came up with new stipulations that did not favour state government

FCT, Abuja - State governors have lost the suit against the federal government and the Nigerian Financial Intelligence Unit (NFIU) seeking financial autonomy from the local government joint account.

According to a report by Channels TV online, the verdict in favour of FG and NFIU was declared by Justice Inyang Ekwo on Monday, May 23 at the Federal High Court in Abuja.

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State Governors, Federal High Court, Federal Government, Financial Autonomy, Justice Inyang Ekwo
Ekiti State Governor Kayode Fayemi is the chairman of the Nigeria Governors Forum (NGF). Photo: (Kayode Fayemi)
Source: Twitter gathered that NFIU in June 2019 rolled out some stipulations to help monitor crime vulnerabilities created by cash withdrawals from local government accounts by various state governments.

In response to the stipulations, the Nigerian Governors Forum filed a lawsuit against the federal government and NFIU for its interference with state government powers to initiate transactions on local government joint accounts as stipulated in the 1999 constitution.

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NFIU stipulated guidelines

In one of the stipulations of the NFIU, banks were ordered not to honour transactions from joint accounts a strategy devised to control money laundering risk and vulnerabilities.

The NFIU guideline also stipulated that states/local governments Joint Accounts should use only for receiving funds and subsequently transferring them to Local government accounts only.

The guidelines also reduced cash withdrawal from local government accounts to five hundred thousand Naira daily.

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Immediately after the guidelines came into place, most local governments across the country stopped facing challenges in the payment of staff salaries.

While reacting to the judgment the Director/CEO of NFIU, Mr Modibbo Tukur said the judgment is good because the Federal government is always ready to protect both states and local governments by making funds available for their governance responsibility.

He stressed that funds can now be decided on by local councils which can be channeled to improve local security.

The CEO of NFIU stated that “from this judgment and from today all transactions on Local Government funds will be disclosed to ICPC and EFCC 100% and will be reported continuously”.

FG shortlists 8000 Nigerians for overseas scholarships

In another development, Buhari's government has decided to put smiles on the faces of Nigerian students with the intellectual foundation and skills.

This is as the federal government shortlisted 8,800 applicants for its overseas scholarship programme.

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Bello Mustapha, the manager of overseas scholarship scheme at PTDF, disclosed that the scholarship is running based on the availability of funds which determines the final selection.

Boy who took fowl to school to clear fees debt gets a scholarship

Meanwhile, previously reported that a young boy who had taken fowl to school to settle debts he owed had bagged a scholarship.

Mathews Simiyu, an SS 2 student at Holy Trinity High School in Saboti, Kenya had been sent home and he resorted to carrying a fowl to the institution hoping to be allowed back to class.

According to a report by K24, Simiyu had not paid his school fees for a year and had been asked to bring anything from home that may pay up the arrears before resuming his studies.


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