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Home Finance & economy

Court reserves ruling in Kano NULGE suit against CBN over withheld allocation

Daily Intel Newspaper by Daily Intel Newspaper
November 27, 2024
Sacked staff drags CBN to court, demand Payment for entitlements, general damages

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A Kano State High Court on Wednesday, reserved ruling in a suit filed by the National Union of Local Government Employees against the Central Bank of Nigeria and others from withholding Kano Local Government allocations

The applicant’s are Chairman of NULGE, Ibrahim Muhd, Ibrahim Uba Shehu, Ibrahim Shehu Abubakar, Usman Isa, Sarki Alhaji Kurawa and Malam Usman Imam.

The applicant’s through their counsel, Bashir Yusuf-Muhammad, filed a motion exparte dated November 1, seeking the court to restrain the respondents from withholding or delaying allocations essential for local governance in the state.

The respondents are  the Accountant-General of the Federation, the Revenue Mobilization Allocation and Fiscal Commission,  the 44 Kano Local Governments, UBA, Access Bank and six other commercial banks.

When the case came up for hearing, Mr Yusuf-Muhammad, filed a reply to the notice of preliminary objection dated November 20.

He said, “The application is attached with four paragraph affidavit and a written address dated November 3. We filed 11 paragraph of better and further affidavit dated Nov.20 and one exhibit”

Mr Yusuf-Muhammad urged the court to discountenance the respondents counter affidavit and grant the applicants reliefs.

Counsel to the 44 Local Governments, Eyitayo Fatogun, SAN, did not oppose the plaintiff’s application, adding that the disbursement of LG allocations should not be truncated.

Responding, Counsel to the CBN, Ganiyu Ajape, filed notice of preliminary objection dated November 14, 2024 pursuant to order 8 rules (1)(2) of the fundamental rights.

He stated, “We filed our reaction and six paragraph counter affidavit dated and filed November 14”

He urged the court to strike out the name of the CBN in the suit for lacking jurisdiction to entertain the matter and not to grant the applicants relief.

Counsel to Guaranty Trust Bank, 49th respondent, Faruk Asekome, filed their counter affidavit dated November 18, on the applicant originating motion attached with a written address.

Mr Asekome urged the court to strike out his client’s name with a substantial cost.

He stated, “My lord, there is no reasonable cause of action disclosed against GT Bank. We don’t have any say in the disbursement of Local government allocations.’’

 Justice Ibrahim Musa-Muhammad, adjourned the matter for ruling in the notice of preliminary objection and the substantive matter, to a date that would be communicated to parties.

The court on November 6 restrained the CBN, AGF and others from withholding Kano State 44 Local Government allocations.

(NAN)

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