TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
No Result
View All Result

New NFIU regulations, wrong approach – Punch

The Citizen by The Citizen
May 17 2019
in Public Affairs
A A
0
FG records oversubscription of February bond auction

With a welter of new regulations, which are set for implementation any minute now, the Nigerian Financial Intelligence Unit has reopened the debate about the true essence of local government administration in the country. In line with this, the NFIU has introduced fresh guidelines, which it claims are targeted at eradicating corruption, terrorism financing and the enthronement of good governance. On the surface, this is a laudable move, but it is steeped in political circumlocution and controversy, which is likely to render it superficial.

When implemented on June 1, the LGs will be automatically barred from daily cash withdrawals above N500,000; banks that conduct transactions on the LG accounts not funded with money will be penalised. As is now preferable, cash transactions are becoming outdated, this being the digital era. Bank transfers are faster, better and can be traced by the legal authorities for those whose aim is to finance terrorism. So discouraging huge cash transactions is a sensible step, but the other aspect is where the NFIU guidelines might come up stuck.

Currently, the LGs are eking it out at the mercy of their state governments. Section 7 of the 1999 Constitution places local government system under state government control. It states, “the Government of every State shall subject to Section 8 of this Constitution, ensure their existence under a law which provides for the establishment, structure, composition, finance and functions of such councils.” And legally, Section 162 (5 and 6) stipulates that each state shall operate a “State Joint Local Government Account.” Herein lies the minefield: the state governments prescribe “the establishment, structure, composition, finance, functions” of councils and control their accounts. Through this lacuna, most of the governors have been manipulating it to suit their own whims. Although every month, funds are allocated, the LGAs can only access what a governor releases to them.

This is a gaping constitutional deficiency, which the NFIU guidelines cannot eradicate. At best, they might even worsen the situation because the financial regulator is putting the cart before the horse. Perhaps, that is why, in collaboration with the outgoing Eighth Senate, it has urged the governors to respect the new regulations. In truth, the governors hold all the aces for now, at least until the constitution says otherwise.

Actually, the drive by the NFIU to get the LGAs working and free of encumbrance cannot be wished away. Nevertheless, with this formula, this could turn out to be a mere dream. The major point at issue is the perception that the LGs deserve autonomy from the state governments because they are wrongly seen as the third tier of government. The Senate President, Bukola Saraki, stated at a recent plenary session that governors should grant autonomy to their LGAs. He is not alone in this quest. The Nigeria Labour Congress is also a vociferous campaigner for local council autonomy, aided by the bizarre constitutional provision that lists 774 LGAs therein.

All of these proponents, from the NFIU, the NLC and Senate seeking to make LGs federating units, are wide of the mark. Ideally, there are mainly two tiers of government in a federal state: the government at the centre, in this case the Federal Government, and the regions, provinces or states; in our case, the 36 states. Any other structure in a federal state is a local arrangement.

In this, the state governments have sole control over local council administration. This is what pitted the Lagos State Government against the Federal Government shortly after the inception of the Fourth Republic in 1999. For creating 37 Local Council Development Areas, the then President, Olusegun Obasanjo, seized the funds allocated to local councils in the state. The seizure pended until a Supreme Court intervention in 2004 that ruled that the LASG had the constitutional power to create the LCDAs, only that the law on it, after having been passed by the state House of Assembly, needed also to be passed by the National Assembly.

Why then is the NFIU recreating a logjam that had been settled by the highest judicatory authority in the land? If the motive is to enthrone good governance, it is a blatantly wrong approach. The 50 states in America have control over the LGAs in their domains, free of interference from the central government in Washington DC. The United States Census Bureau said that as of 2012, there were 89,004 LGAs in America, consisting of municipalities, counties, township governments and special purpose-LGs.

Similarly, under Switzerland’s 1848 federal constitution, the central government and the cantons (states) are the federating units. Consequently, the cantons define the powers of their communes (or councils), which are 2,300 in all. Therefore, no matter how well-intentioned the NFIU’s aims are, it should stop standing political logic on its head. Its new rules extend the frontiers of centralisation in a federal polity, provoking primordial tensions unnecessarily.

Nevertheless, corruption permeates the Nigerian polity, denying the citizens the basic benefits of governance. Without a solid strategy, the anti-corruption war is doomed. The NFIU, which was excised a while back from the Economic and Financial Crimes Commission after a bitter battle in the National Assembly, should devise holistic measures against rampant graft in conjunction with the other anti-corruption agencies. They should go after governors who hijack funds allocated for development in their states across party lines.

The National Assembly should do the right thing, which is to enthrone true federalism, thereby dissipating ethnic tensions. It should expunge the 774 LGs from the Constitution, vesting the power to create, fund and operate the LGs in the state governments.

Previous Post

The concerted effort to free Zainab Aliyu – New Telegraph

Next Post

In shareholders’ interest – The Nation

Related Posts

Recycled leaders, Recycled problems – PM News
Politics

Recycled leaders, Recycled problems – PM News

May 26 2026
Bandits attack Katsina govt bus, abduct passengers
Public Affairs

Don’t allow insurgents to kill education – Punch

May 26 2026
Hepatitis: Rescuing Nigerians from needless deaths – Punch
Public Affairs

Hepatitis: Rescuing Nigerians from needless deaths – Punch

May 22 2026
Mass failure: JAMB, VCs to review UTME results Thursday
Public Affairs

UTME reforms, admissions waivers – Punch

May 20 2026
In 2027 elections, voter apathy looms large – Punch
Public Affairs

In 2027 elections, voter apathy looms large – Punch

May 18 2026
Oyo school attacks: A call to action for South West governors – Punch
Public Affairs

Oyo school attacks: A call to action for South West governors – Punch

May 17 2026
Next Post
SEC commends DMO, CBN, PENCOM on Sukuk

In shareholders’ interest – The Nation

Christian Chukwu arrives London for medical treatment

Christian Chukwu arrives London for medical treatment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FROM THE GRASSROOTS

Alaafin urges FG to strengthen native intelligence after Oyo school attacks

Alaafin urges FG to strengthen native intelligence after Oyo school attacks

by The Editor
May 17 2026
0

...

Gov. Adeleke deposes Oba Joseph Oloyede, Apetu of Ipetumodu

Gov. Adeleke deposes Oba Joseph Oloyede, Apetu of Ipetumodu

by The Editor
May 12 2026
0

...

Ebonyi State lifts 3-month curfew after bloody boundary crisis

Ebonyi State lifts 3-month curfew after bloody boundary crisis

by The Editor
May 5 2026
0

...

Ondo community begs Gov. Aiyedatiwa to intervene in regent appointment crisis

Ondo community begs Gov. Aiyedatiwa to intervene in regent appointment crisis

by The Editor
April 30 2026
0

...

APPOINTMENTS

Elumelu joins Seplat board after $496m share acquisition

Elumelu joins Seplat board after $496m share acquisition

by The Editor
May 21 2026
0

...

Tinubu appoints 39-year-old Prof as new JAMB registrar

Tinubu appoints 39-year-old Prof as new JAMB registrar

by The Editor
May 21 2026
0

...

Soludo reshuffles power structure, swears in 18 Commissioners

Soludo reshuffles power structure, swears in 18 Commissioners

by The Editor
May 18 2026
0

...

Tinubu creates Homeland Security adviser role, appoints ex-army general

Tinubu creates Homeland Security adviser role, appoints ex-army general

by The Editor
May 11 2026
0

...

ODDITIES

Bus driver stabs transport officer to death in Calabar

Bus driver stabs transport officer to death in Calabar

by The Editor
May 26 2026
0

Hoodlums kill Imo nursing student

Hoodlums kill Imo nursing student

by The Editor
May 22 2026
0

Police arrest officer for threating to kill anyone recording him on duty

Police arrest officer for threating to kill anyone recording him on duty

by The Editor
May 21 2026
0

GLOBAL NEWS

Pope Leo XIV apologizes for Vatican’s role in legitimizing slavery

Pope Leo XIV apologizes for Vatican’s role in legitimizing slavery

by The Editor
May 26 2026
0

...

2026 World Cup: Our host is FIFA, not Trump or America– Iran

Iran accuses US of violating ceasefire

by The Editor
May 26 2026
0

...

Senegal: Ousted Prime Minister Ousmane Sonko emerges national assembly speaker

Senegal: Ousted Prime Minister Ousmane Sonko emerges national assembly speaker

by The Editor
May 26 2026
0

...

Several die after train hits school bus in Belgium

Several die after train hits school bus in Belgium

by The Editor
May 26 2026
0

...

Sierra Leone welcomes first US deportation flight under Trump crackdown

Sierra Leone welcomes first US deportation flight under Trump crackdown

by The Editor
May 22 2026
0

...

State of the States

Kano closes schools for Eid-el-Kabir

Gov. Yusuf approves N20,000 Eid package for Kano civil servants

by The Editor
May 26 2026
0

...

Benue governor secures return ticket

Benue governor secures return ticket

by The Editor
May 22 2026
0

...

Lagos restricts access to magistrate courts, denies ban on sureties

Lagos restricts access to magistrate courts, denies ban on sureties

by The Editor
May 22 2026
0

...

Kano closes schools for Eid-el-Kabir

Kano closes schools for Eid-el-Kabir

by The Editor
May 20 2026
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
Alleged N15.7bn fraud: Ex-Skye Bank chair Ayeni secures N200m bail

Alleged N15.7bn fraud: Ex-Skye Bank chair Ayeni secures N200m bail

May 26 2026
Tinubu congratulates Rangers FC on winning league title for record time

Tinubu congratulates Rangers FC on winning league title for record time

May 26 2026
Bayelsa enters commercial aviation, inaugurates Pioneer Airlines

Bayelsa enters commercial aviation, inaugurates Pioneer Airlines

May 26 2026
Gov. Adeleke endorses Tinubu for 2027

Gov. Adeleke endorses Tinubu for 2027

May 26 2026

EDITORIAL REVIEW

Recycled leaders, Recycled problems – PM News

Recycled leaders, Recycled problems – PM News

by The Editor
May 26 2026
0

Bandits attack Katsina govt bus, abduct passengers

Don’t allow insurgents to kill education – Punch

by The Editor
May 26 2026
0

Hepatitis: Rescuing Nigerians from needless deaths – Punch

Hepatitis: Rescuing Nigerians from needless deaths – Punch

by The Editor
May 22 2026
0

Mass failure: JAMB, VCs to review UTME results Thursday

UTME reforms, admissions waivers – Punch

by The Editor
May 20 2026
0

In 2027 elections, voter apathy looms large – Punch

In 2027 elections, voter apathy looms large – Punch

by The Editor
May 18 2026
0

Opinion

School attacks and the death of ethics

School attacks and the death of ethics

by The Editor
May 22 2026
0

...

The dangers of a one-party state

The dangers of a one-party state

by The Editor
May 5 2026
0

...

Dear Senator Tinubu, Buhari has thrashed us all!

NBC’s real struggle

by The Editor
April 30 2026
0

...

Even INEC admonishes the media?

Even INEC admonishes the media?

by The Editor
April 12 2026
0

...

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.

No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.