Ime Akpan
The announcement by the Nigerian Financial Intelligence Unit (NFIU) of new guidelines which would make the joint account system currently in use by state and local governments only exist for the receipt of allocations from the federation account but not for disbursement has caused a ripple of anxiety in the Nigerian Governors’ Forum (NGF).
The unit also went ahead and directed banks and other financial institutions to be prepared for local and international sanctions should they connive with governors to circumvent the guidelines which take effect on June 1.
Consequently, the NGF has written to President Muhammadu Buhari to call the agency to order saying it (NFIU) has no business meddling in how state governments disburse funds to their respective local governments.
The NGF, in a letter issued on their behalf by the spokesman for the forum, Mr. Abdulrazaque Bello-Barkindo, said the guidelines violate the 1999 Constitution, as amended.
They said there were no wider consultations with stakeholders before the NFIU issued the guidelines and pleaded with the president to call to order the director and chief executive officer of the unit, Mr. Modibbo Hamman-Tukur, to order.
Furthermore, they said they were not opposed to the war against corruption, money laundering and terrorism and urged the president to direct the NFIU to disregard the guidelines.
In the letter entitled ‘Re: NFIU enforcement and guidelines to reduce crime vulnerabilities created by cash withdrawal from local government funds throughout Nigeria effective June 1st, 2019’ states: “The attention of the Nigeria Governors’ Forum (NGF) has been called to certain Guidelines on the above subject recently released by the Nigerian Financial Intelligence Unit and purportedly said to become operational effective 1st June 2019.
“The NGF wishes to express its dismay and angst at the attempt to ridicule our collective integrity and show total disregard to the Constitution of the Federal Republic of Nigeria (1999) as amended.
“We kindly invite Mr. President to note Section 7(6) (a) and (b) of the Constitution which confers on the National Assembly and the State House of Assembly, the powers to make provisions for statutory allocation of public revenue to the local councils in the Federation and within the State respectfully.
“Similarly, Section 162(6) of the Constitution expressly provides for the creation of the State Joint Local Government Account (SJLGA) into which shall be paid all allocations to the LGAs of the state from the Federation Account and from the government of the state.
“Section 162(7) of the Constitution goes on to confer on the National Assembly the power to prescribe the terms and manners in which funds from the SJLGA may be disbursed and in subsection 8, the Constitution empowers the State House of Assembly to prescribe the manner in which the amount standing to the credit of the local councils in the state shall be distributed. We respectively attach relevant sections of the Constitution.
“Nothing in the Nigerian Financial Intelligence Unit Act 2018 (herewith attached) gives the NFIU the powers that it seeks to exercise in the recently released Guidelines and in doing this, the Unit has acted in excess of its powers and in complete disregard to the constitution of the country.
“The so-called guidelines are, in our view, an exercise in mischief-stoking and one calculated to cause chaos and overheat the polity.
“The guidelines have nine (9) provisions, including two (2) sections covering sanctions/ penalties, powers that they clearly do not possess.”
“The NFIU in proposing far-reaching guidelines of this nature ought to have consulted widely and carried all stakeholders along. The director of the NFIU should be called to order because reckless proposals like the said NFIU guidelines have the potential to cause disaffection in the country. For ease of reference, we are attaching the NFIU Guidelines.”
“We invite Mr. President to note that the local government is a creation of the constitution and it is neither a financial institution nor a reporting entity and cannot be brought under the NFIU in the manner contemplated by the guidelines.
“Finally, Mr. President may recall the role played by the governors in getting the country out of recession and our contributions in strengthening the democratic experience in Nigeria.
“The NGF identifies with Mr. President’s efforts to combat corruption, money laundering and terrorism amongst other social ills and will use our best endeavours in ensuring that our financial system is preserved through our concerted and individual efforts at fighting these ills.
“However, due process and constitutionalism are major planks in our journey to sustainable democracy and we appeal to Mr. President to direct that the said guidelines be disregarded in view of its unconstitutionality and total disregard for due process.”
Meanwhile, a former president of the Nigerian Bar Association (NBA), Mr. Olisa Agbakoka, in a reaction said although the role of NFIU is unwieldy, he does not think such responsibilities include monitoring the disbursement of funds to the local councils.
“The role of NFIU is very wide but I do not think that part of that role is to monitor the disbursement of funds meant for local governments. The governors are absolutely right in asking the president to caution NFIU with regards to how funds meant for local government should be disbursed,” he said.
But another legal practitioner, Mr. Monday Ubani disagreed and commended the NFIU for what it is doing.
He alleged that the governors had been stealing money belonging to the local governments and as such they have no right to ask the president to call the NFIU to order.
He therefore urged Nigerians and the national assembly to support the NFIU.
“The governors are not right in their observations because they have been stealing the money that belongs to local governments and Nigerians have kept quiet. I want Nigerians and the national assembly to support the NFIU in this directive to save Nigeria.
“Nigerians are leaving the country due to mismanagement of funds and now that something is being done about it, some people are crying foul. The President should warn the governors.
“The governors have no moral right to ask the president to caution the NFIU. What the NFIU is doing is commendable and must be encouraged,” said Ubani.
