The federal government led by President Bola Ahmed Tinubu, on Wednesday, February 19, explained why, despite the Supreme Court’s order, the Central Bank of Nigeria (CBN), has not commenced the direct release of funds to the country’s 774 Local Government Areas (LGAs).
Autonomy: FG explains delay in direct LGA funds
The Attorney-General of the Federation and Minister of Justice, Mr. Lateef Fagbemi (SAN), and CBN’s Director of Legal, Mr. Kofo Salam-Alade, maintained that modalities that would enable the various LGAs to draw funds directly from the federation account were not in place.
Fagbemi, represented by the Director of Civil Litigation at the Federal Ministry of Justice, Tijjani Gazali, added that an implementation committee was set up following the Supreme Court’s judgement.
Recall that a July 2024 Supreme Court judgement granted full financial autonomy to Nigeria’s 774 local government areas and mandated direct payments to the councils.
However, the federal government led by President Bola Ahmed Tinubu has not implemented the decision.
The committee, which includes representatives from the Federal Government, the Association of Local Governments of Nigeria (ALGON) and the Nigerian Governors’ Forum (NGF), have been working on a framework for the full implementation of the ruling, particularly regarding the direct payment of allocations from the Federation Account to LGAs.
“The committee is expected to complete its mandate any time from now and present its recommendations to Nigerians,” the AGF stated.
As reported by Vanguard, he added that President Tinubu’s administration remains committed to granting LGAs full autonomy.
Speaking further, the AGF, however, condemned the continued illegal removal of democratically elected local government councils by some state governors, despite the Supreme Court’s ruling against such actions.
The Director of Legal Services at the Central Bank of Nigeria, Salam-Alade, provided further insight into the delayed fund disbursement.
He noted that the apex bank had no direct banking relationship with the LGAs.
Salam-Alade explained that the bank had begun profiling individuals who would serve as signatories to the LGAs’ accounts, a necessary step to ensure financial accountability.
As reported by The Punch, he urged ALGON to encourage its members to engage with the CBN at the local level, assuring that once proper documentation is completed, the accounts will be operational within 48 hours.
“We are using this opportunity to call on the 774 local government chairmen to come forward for their documentation. No account can be operationalised without the prerequisite Customer Due Diligence (CDD),” Salam-Alade added.
Presidency shares when LG receive allocation directly
Legit.ng earlier reported that Tinubu’s administration disclosed that the implementation of the Supreme Court judgment on local government autonomy will commence in January end.
Sunday Dare, the spokesperson to Tinubu, said the implementation was delayed to allow some mechanism to be put in place and has now been achieved.
