Fatshimetrie Contest NFIU’s Financial Guidelines in Supreme Court Case
A recent development has seen the Ogun State government challenge the Nigerian Financial Intelligence Unit (NFIU)’s Financial Guidelines in a case before the Supreme Court. Contrary to media reports suggesting a dispute over the constitutionality of the Economic and Financial Crimes Commission (EFCC), the state clarified that its contention focuses on the restrictive nature of the NFIU’s guidelines, which it views as limiting the operations of states and local governments in the country.
In an official statement issued by the Special Adviser to the Governor on Media and Strategy, Hon. Kayode Akinmade, the Ogun State government emphasized that the constitutionality of the EFCC and the Independent Corrupt Practices Commission (ICPC) has already been determined by the Supreme Court. Therefore, discussions on the issue are considered closed by the state.
The core of the matter lies in the NFIU’s release of a Guidelines document and an Advisory in January 2023, purportedly acting under the Anti-Money Laundering Act, Proceeds of Crime Act, and its enabling statute. These guidelines placed restrictions on cash withdrawals by State and Local Governments, causing significant disruptions to governance according to Ogun State’s perspective.
The case filed by Ogun State (SC/CV/912/2024) and other states (SC/CV/178/2023) aims to challenge the NFIU Guidelines and Advisory, specifically concerning their interference with the economic and governance interests of Ogun State and its Local Governments. The state argues that with the Supreme Court’s guarantee of Local Governments’ access to their funds, intrusive subsidiary legislation by the unelected bureaucrats in the NFIU should not impede the legitimate utilization of public funds.
It is essential to discern the nuanced nature of the case, which does not contest the constitutionality of the EFCC but rather seeks to ensure that the financial guidelines do not hinder the effective governance and utilization of resources at the state and local government levels. The implications of this case extend beyond Ogun State, highlighting the importance of a cooperative and balanced relationship between federal and state entities in upholding the rule of law and promoting good governance.
As the legal battle unfolds at the Supreme Court, the outcome will not only impact Ogun State but also set a precedent for how states can assert their autonomy and protect their governance interests within the constitutional framework of Nigeria. It underscores the significance of upholding the principles of federalism while ensuring that regulatory measures do not unduly impede the effective functioning of state and local governments in fulfilling their mandates to the citizens they serve.