Controversies still continue to trail the Nigerian Financial Intelligence Unit’s (NFIU) regulation on local governments’ financial autonomy, which is referred to as “NFIU Enforcement and Guidelines to Reduce Crime Vulnerabilities Created by Cash Withdrawal From Local Government Funds Throughout Nigeria Effective June, 1, 2019”.
![](https://thenigerialawyer.com/wp-content/uploads/2024/11/TheNigerialawyer-WhatsApp-Channel1.jpg")
It would be recalled that the NFIU regulation became operative on 1st day of June, 2019 which abolished states’ local governments joint accounts between the states and the local governments funds in Nigeria.
Aggrieved by the above development, TheNigeriaLawyer recalls that the 36 Governors of the Federation had on 27th day of May, 2019 prior to the coming into force of the NFIU regulation approached the Federal High Court before Hon. Justice Inyang Ekwo, in suit no. FHC/ABJ/CS/593/2019 urging the Court to strike down the regulation and declare same null and void for being unconstitutional.
However, the Attorney General of the Federation, Mr. Abubakar Malami through Mr. Dayo Akpata, SAN, Perm. Sec. Ministry of Justice has greeted their suit with a Notice of Preliminary Objection craving the indulgence of the Court to strike out the suit, urging the Court that:
“The plaintiffs (the 36 state governors and the NGF), by this suit, seek to breach the provisions of the constitution as it relates to the doctrine of federalism establishing financial autonomy of the Nigerian local government system.
“The plaintiffs by this suit seek to promote illegality and a breach of the constitution and as such make this suit incompetent.
“This court cannot be used as a vehicle to breach the provisions of the constitution.”
It was added that “the subject matter of this suit relates to the power of the Nigerian Financial Intelligence Unit to issue guideline on the need to adhere to strict payment of funds to local government council in line with the provisions of the constitution.”
Besides, the AGF further contends that the regulation is giving more life and effect to the provisions of the Constitution contrary to the contention of the plaintiffs.
“relates to the enforcement of the provisions of section 162 (6), (7) & (8) of the 1999 Constitution (as amended).”
Furthermore, the AGF contended that the Governors are bereft of the competence to institute the suit because it directly affects the local governments who are deemed to be independent by the age long practice of Federalism.
“The subject matter of this suit directly affects the local government councils in Nigeria and not the plaintiffs in this suit.
“By the doctrine of federalism, local government councils are independent and have financial autonomy from the respective plaintiffs in this suit.”
In all, the Court was urged to dismiss the suit for being unconstitutional.
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