Two states, Nasarawa and Ogun, have expressed their concerns over the Nigerian Financial Intelligence Unit’s cash withdrawal limit guidelines. These guidelines restrict states and local governments from withdrawing amounts exceeding specified limits. The Supreme Court has scheduled a hearing on this matter for October 22.
The states argue that the guidelines interfere with their constitutional rights to manage and control their funds. They believe that the guidelines could hinder their ability to carry out essential functions such as human and capital development and budget execution. The plaintiffs contend that the guidelines, if enforced, would impede their responsibilities and operations.
Nasarawa State, in particular, has challenged the constitutionality of the guidelines, stating that they infringe upon their exclusive powers as granted by the Nigerian Constitution. They argue that the guidelines could disrupt the state’s financial management and governance.
Ogun State has also filed a case against the NFIU guidelines, emphasizing that the restrictions do not align with their legal interpretation and could disrupt governance activities. The state aims to invalidate the guidelines to ensure the free use of public funds without unnecessary interference. They assert that the Supreme Court’s previous rulings have upheld local governments’ access to their funds, and they seek to prevent undue bureaucratic influence over financial matters.