The Ogun State Government revealed on Tuesday that it is contesting the Nigerian Financial Intelligence Unit (NFIU)’s financial guidelines in court. These guidelines, according to the state, impose unfair restrictions on the operations of states and local governments in the country.
The guidelines, issued in January 2023, place limits on cash withdrawals by state and local governments as part of efforts to combat money laundering, terrorism financing, and the proliferation of weapons. However, Ogun State contends that these restrictions interfere with its economic interests and governance.
In case No. SC/CV/912/2024, Ogun State argues that the guidelines and advisory from NFIU impede the state’s and its local governments’ ability to function effectively. According to the state, these limitations do not align with its interpretation of the law.
The Special Adviser to the Governor on Media and Strategy, Hon. Kayode Akinmade, disclosed this in a statement, clarifying that Ogun State’s legal challenge is focused solely on the NFIU’s guidelines and does not question the constitutionality of the Economic and Financial Crimes Commission (EFCC) or the Independent Corrupt Practices Commission (ICPC).
Reports in the media had indicated that the state had joined some states of the federation in a case at the Supreme Court challenging the constitutionality of the EFCC. But he emphasized that the Supreme Court had already resolved the constitutionality of both agencies, and Ogun State respects and upholds federal law enforcement.
The statement further noted that Ogun State’s challenge seeks to prevent what it describes as “intrusive subsidiary legislation” by the NFIU from hindering the legitimate use of public funds by local governments. Akinmade recalled that the Supreme Court recently invalidated the controversial naira redesign policy, which Ogun State and other states had successfully contested, as an example of the state’s commitment to safeguarding local governance rights.
He concluded by asserting that Ogun State’s objective is to protect the ability of state and local governments to manage their finances without undue interference from unelected federal bureaucrats.
“Nigerians recall the obnoxious naira redesign policy, which was invalidated by the Supreme Court after Ogun State and other states successfully challenged the policy,” Akinmade said.
“A lesser-known fact is that around that time in January 2023, purporting to act under the Anti-Money Laundering Act, Proceeds of Crime Act, and its enabling statute, the Nigerian Financial Intelligence Unit (NFIU) released a Guidelines document and an Advisory which, among other things, placed limits on cash withdrawals by State and Local Governments. Ogun State disagrees with these limits because they do not align with our view of the law and cause significant governance disruptions.
“As such, the suit is targeted at invalidating the NFIU Guidelines and Advisory, insofar as they interfere with the economic and governance interests of Ogun State and its Local Governments.
“Especially now that the Supreme Court has guaranteed the Local Governments’ access to their funds, intrusive subsidiary legislation by unelected bureaucrats in the NFIU ought not to stand in the way of the justified free use of public funds,” he added.