Investigation: Why Supreme Court judgement, NFIU regulation, may pitch LG Chairmen against governors

Dig-Deep by Fresh Angle International, indicates that the Supreme Court ruling earlier today, Thursday July 11, which barred the 36 governors of the federation from further retaining or utilizing funds that are meant for the 774 Local Government Councils, LGCs, may pitch local government chairmen in the country against their political godfathers, the governors.

The apex court ruled that it is illegal and unconstitutional for governors to continue to receive and seize funds allocated to LGAs in their states. 

It maintained that the “dubious practice” which has gone on for over two decades, was a clear violation of Section 162 of the 1999 Constitution, as amended.

In its lead judgement that was delivered by Justice Emmanuel Agim, the apex court held that no House of Assembly of any state has the power to make laws that could, in any manner, interfere with monies meant for the LGAs.

The projection by This Soaring International Digital Newspaper of likely confrontation between the local government chairmen and the governors, is not unconnected with the regulations released sometime last year by the Nigerian Financial and Intelligence Unit, NFIU, which stipulates that all payments in the three tiers of government, from the public treasury beyond the threshold approved for daily cash limit by the Central Bank of Nigeria, must be done electronically with effect from March 1, 2023.

“The guidelines by the NFIU, explicitly stated that the local government council’s N500,000 cash withdrawal limit with regards to public accounts and instituted funds, were discontinued to activate implementation of the electronic cash transfer policy.

The NFIU explained that the application of the new measures, became necessary to enable Nigeria to comply with the Enforcement, Guidelines and Policies for the Mitigation of Money Laundering, Terrorist Financing, Proliferation of Weapons and Prevention of Predicate Crimes.

According to the financial intelligence agency, “Most cash withdrawals from public accounts are in excess of N5 million and N10 million respectively, which is prohibited and liable to imprisonment upon conviction”, implying that should any local government chairman in the country electronically transmits fund from the local government coffers to any governor, the NFIU or EFCC, can easily trace such movement of fund.

The NFIU said last year: “It is hereby stated clearly that any individual or corporate body who violates the provisions of these guidelines is in direct contravention of provisions of Section 2 of MLPPA, 2022, Section 13 of MLPPA, 2022, NFIU Act, 2018 and Section 26 of POCA, 2022, and their attendant principles and interpretations and will be liable to necessary prosecution and penalties from the effective said date. Cash withdrawals from public accounts would be treated as a money laundering offence.

“Also, it is hereby provided that any public officer or any citizen who comes into contact with the provisions of these Guidelines with its attendant principles shall as a matter of obligation promote the implementation and success of the guidelines.”

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