Efforts to implement the Supreme Court’s ruling on financial autonomy for Nigeria’s 774 local governments have hit a roadblock as key stakeholders struggle to finalize the necessary procedures for direct allocation disbursement.
The Accountant-General of the Federation (AGF), Oluwatoyin Madein, and the Attorney-General and Minister of Justice, Lateef Fagbemi (SAN), have been holding discussions on how to enforce the July 11, 2024, Supreme Court verdict. However, the process remains stalled due to difficulties in identifying local governments with democratically elected officials.
Challenges in Account Submission
According to the minutes of the Federation Account Allocation Committee (FAAC) Technical Sub-Committee meeting, only Delta State’s local government areas (LGAs) have fully submitted their account details for direct payment. While some LGAs have provided their details directly and others through state governments, the process remains inconsistent across states.
AGF Madein highlighted the need for clarification on which local governments have constitutionally elected chairmen before funds can be disbursed. She also stated that her office would seek further guidance from the Attorney-General to determine the next steps.
The Accountant-General of Niger State suggested that once the AGF finalizes the procedures, a formal letter should be sent to the Office of the Accountant-General of the Federation (OAGF) to ensure uniformity in account submissions.
CBN’s Role in the Process
Meanwhile, the Central Bank of Nigeria (CBN) has begun profiling the chairmen and signatories of the 774 LGAs’ bank accounts to ensure financial accountability. The Director of Legal Services at the CBN, Kofo Salam-Alada, stated that the apex bank is following a standard “Know Your Customer” (KYC) procedure to verify the authenticity of account holders before activating the accounts.
However, the Association of Local Governments of Nigeria (ALGON) has disputed these claims, stating that they have not received any official communication from the CBN regarding the verification process. ALGON members across various states, including Abia, Oyo, Benue, and Kano, confirmed that no invitations had been sent to local government chairmen for signatory verification.
Governors Accused of Stalling Implementation
Despite the Supreme Court’s ruling that state governors must relinquish control of local government funds, financial autonomy has yet to take effect. The National Union of Local Government Employees (NULGE) has accused some governors of deliberately obstructing the process.
NULGE National President, Hakeem Ambali, refuted claims that LGAs had failed to provide audited accounts, insisting that most councils have at least three years’ worth of financial records ready for verification. He warned the CBN against enabling state governors to delay the full implementation of local government autonomy.
Way Forward
With Delta State leading the way in submitting LGA account details, other states are expected to follow once clear directives from the AGF are issued. However, the ongoing legal and administrative hurdles suggest that full implementation of the Supreme Court’s ruling may still take time.
For now, local government autonomy remains a constitutional promise yet to be fully realized, as the federal and state governments continue to navigate the complexities of direct fund disbursement.
