Politics
Governors May Sue NFIU Over LG Funds
Governors of the 36 states under the aegis of the Nigerian Governors’ Forum (NGF) may take the Nigerian Financial Intelligence Unit (NFIU) to court over its directive that they should not tamper with funds accruing to Local Government Areas from the Federation Accounts, according to The Tide’s source.
The decision to approach the court may, however, wait until the governors exploit their option to use dialogue to resolve the issue.
The source learnt that one of the means of dialogue reached at the meeting of the NGF in Abuja was for its leadership to meet with President Muhammadu Buhari over the NFIU directive.
The NGF, it was also learnt, discussed the possibility of meeting with the Attorney General of the Federation and Minister of Justice, Abubakar Malami, to inform him about what they considered as the illegality of the NFIU’s directive.
The new Chairman of the NGF, who is also the Governor of Ekiti State, Dr Kayode Fayemi, told the source that the possibility of approaching the court had not been ruled out on the matter.
He however stated that the forum would explore all avenues before considering legal option.
“The possibility of approaching the court on the issue is high and has not been ruled out. But we will explore all the avenues for dialogue first. June 1, which the agency gave as the date for implementation of the directive to banks and the LGAs, is fast approaching,” Fayemi said.
Under Nigeria’s revenue sharing formula, the Federal Government takes 52.68 per cent from the federation account, the 36 states 26.72 per cent, while 20.60 per cent is handed to the 774 councils.
However, governors created a join account with local governments in their states through which they control what comes to the LGAs.
The NFIU, on May 1 issued a guideline to reduce vulnerabilities created by cash withdrawals from local government funds throughout the country.
The guideline, amongst others, seeks to systematically restore council’s financial autonomy. It also limited the cash amount that could be withdrawn from any local government to N500, 000 a day.
But the outgoing chairman of the NGF, who is also the Governor of Zamfara State, Abdulaziz Yari, maintained that the NFIU order issued governors not to touch revenues disbursed to local governments every month from the federation account, was unconstitutional.
He said they would take the matter to Buhari to let him know the agency constitutionally lacks power to issue such orders.
“The Forum is concerned with recent guidelines of the Nigerian Financial Intelligence Unit which seeks to impose restriction on the powers of states and local governments to operate within constitutionally approved parameters.
“The new guidelines have no legal basis under the NFIU Act and are contrary to constitutional provisions which put the State Joint Local Government Account under the legislation of the state Houses of Assembly.
“The guidelines will also be detrimental to the interest of the states and local governments by crippling programmes such as the Universal Basic Education programme, Primary Health Care Under One Roof as well as the payment of the salaries of teachers, medical doctors and health workers among others which are primarily funded by State Governments”, he concluded.
During a press conference held in Owerri, the coalition called the campaign a “dangerous and shameful display” designed to distract the public from the governor’s performance in office.
The CSOs directly linked the Greater Imo Initiative (GII) —the group that made the allegations on September 4, 2025—to Governor Uzodimma, describing the group as his “mouthpiece and attack dog.”
“Every word spoken against INEC was spoken on his behalf.
“By falsely alleging that Professor Yakubu has an alliance with Dr. Amadi to compromise the 2027 elections, Uzodimma has not only maligned a man of proven integrity but also assaulted the very foundation of our democracy”, said Dr Agbo Frederick, speaking for the coalition.
The coalition described Professor Yakubu as a “beacon of electoral professionalism” and called the attempt to soil his reputation “defamatory and a national security risk.”
They also defended Dr. Amadi, a “respected development scholar,” stating that the governor’s accusations were “laughable, desperate, and dangerous.”
The CSOs see the motive behind the campaign as an attempt to “silence the dissent, intimidate the opposition, and divert attention from the governor’s abysmal record in office.”
The coalition issued four key demands to Governor Uzodimma: An immediate retraction of the false and defamatory allegations against Professor Mahmood Yakubu and Dr. Chima Amadi.
- A public apology to both men within seven days, to be published in at least three national newspapers and broadcast on major television networks.
- An end to diversionary tactics and proxy propaganda.
- A renewed focus on governance, including addressing insecurity, unemployment, and poverty in Imo State.
The CSOs warned that failure to comply would force them to “review our position with a view to seeking legal redress from Governor Uzodimma for defamation, false accusation, and reckless endangerment of lives.”
“Governor Uzodimma must be reminded that he did not find himself in the seat of power to chase shadows.
“We call on all Nigerians to reject Uzodimma’s diversionary antics as they are nothing short of desperate plots by a government terrified of accountability”, the statement concluded.
In a statement signed by its National Publicity Secretary, Mallam Bolaji Abdullahi, the ADC expressed concern that preventing the senator from resuming her legislative duties violates democratic principles and disenfranchises her constituents.
“The suspension, having been imposed by the Senate and not a court of law, has lapsed. Any further attempt to prevent her from resuming is therefore both illegal and morally indefensible,” Mallam Abdullahi said.
The party noted that denying Sen. Akpoti-Uduaghan access to the chamber silences the voice of the people who elected her, adding that the withdrawal of her salary, aides, and office access during the suspension amounted to excessive punishment.
The ADC also criticised the Clerk of the National Assembly for declining to process her resumption on grounds that the matter was before the courts, arguing that the Clerk’s role was administrative, not judicial.
“Administrative caution must not translate into complicity. When the administrative machinery becomes hostage to political interests, the institution itself is diminished,” the party stated.
Highlighting that Sen. Akpoti-Uduaghan is one of only four women in the 109-member Senate, the ADC warned that the handling of the case sends a discouraging signal about gender inclusion in Nigerian politics.
“Any action that resembles gender intimidation of the few women in the Senate would only discourage women’s participation. Nigeria cannot claim to be a democracy while excluding half of its population from key decision-making spaces,” Mallam Abdullahi added.
The ADC insisted that Sen. Akpoti-Uduaghan be allowed to resume her seat immediately, stressing that the matter was about more than one individual.
“What is at stake here is not just one Senate seat, but the integrity of our democracy itself,” the party said.
