The Federal High Court sitting in Abuja, yesterday, dismissed a suit that State governors of the 36 States of the Federation filed to query the constitutionality of regulations the Nigerian Financial Intelligence Unit, (NFIU), issued to guarantee financial autonomy for local governments.
The court, in a judgment that was delivered by Justice Inyang Ekwo, held that the suit lacked merit.
It held that the regulations, which came to effect on June 1, 2019, were aimed to ensure that funds meant for local governments are paid directly to them, rather than through a joint account controlled by State governors.
Besides, Justice Ekwo stressed that provisions of the NFIU’s guidelines, were not in conflict with the 1999 Constitution, (as amended).
The court said that the guidelines did not contradict Section 162(8) of the Constitution, which prescribed that the amount standing to the credit of the local government council of the state shall be distributed among the local government councils of that state on such terms and in such manner as may be prescribed by the House of Assembly of the State.
In their suit, the plaintiffs, through their lawyer, Prince Lateef Fagbemi, (SAN), prayed the court to nullify the regulations for being unconstitutional, null and void.
They urged the court to declare that by virtue of sections 4(7), 7(6)(a) and (b), 162(6) and 162(7) and (8) of the Nigerian Constitution, the State governments “are not subject to control or directive of the Nigerian Financial Intelligence Unit or body on the terms and manner of operation of State Joint Local Government Account other than by a law passed by the states’ House of Assembly”.
