A Federal High Court in Abuja has rejected the request by governors for an order to stop the implementation of guidelines issued by the Nigerian Financial Intelligence Unit (NFIU) in relation to the operation of the State-Local Government Joint Accounts. The guidelines also stopped governors from tampering with funds meant for Local Government Areas.
The NFIU’s guidelines, which took effect from the first of June, directed banks not to allow transactions in States/Local Government Joint Accounts, but that such accounts should only be used to distribute allocations to accounts of local governments directly.
In a suit they filed before the court, the governors had challenged the legality of the guidelines.
However, the case could not be heard yesterday, owing to the absence of the NGF’s lead lawyer, Lateef Fagbemi (SAN) who was before the Presidential Election Petition Tribunal.
Justice John Tsoho declined a request by the governors to restrain the NFIU from implementing the guidelines pending the determination of a suit it filed before the Federal High Court 2, Abuja.
The judge refused to grant an interlocutory injunction when the matter came up in Abuja on Monday, saying said since it was a constitutional matter, he would not ”bother with interlocutory injunctions.”
The judge then adjourned till October twenty third for the hearing of all pending applications