The Federal Government through the Accountant-General of the Federation, Dr. Oluwatoyin Madein, and the Attorney-General and Minister of Justice, Lateef Fagbemi, SAN, have initiated discussions on implementing the Supreme Court’s July 11, 2024, judgment granting financial autonomy to local governments. However, the direct allocation of funds to the 774 Local Government Areas (LGAs) continues to face delays.
According to minutes from the Federation Account Allocation Committee (FAAC) Technical Sub-Committee meeting made available to newsmen, the two officials are working on modalities for submitting LGAs’ bank accounts for direct payments. A significant challenge is identifying LGAs with democratically elected officials, as only Delta State has fully submitted its account details to the Office of the Accountant-General of the Federation (OAGF).
The minutes reveal that while the OAGF has begun receiving account details from various sources, only Delta State LGAs have completed the process. Some LGAs submitted their details directly, while others did so through their state governments.
Dr. Madein stated, “The Office has started receiving account details from various sources; some directly, while others are going through the states. So far, only local governments in Delta State have provided account details. However, consultation with the Attorney-General of the Federation on the modalities of submission is still ongoing.”
The meeting highlighted concerns about the legal procedures for submitting accounts, particularly regarding constitutional provisions. A key obstacle is determining which LGAs have constitutionally elected chairmen. Dr. Madein noted that this foundational issue remains unresolved, adding that mechanisms must be established to ensure direct allocations reach LGAs with duly elected leadership.
The Accountant-General of Niger State suggested that once the AGF provides clear modalities, a formal letter should be sent to the OAGF outlining the steps for LGAs to follow. Without clear guidance, inconsistencies in implementing financial autonomy could arise across states.
Meanwhile, the Central Bank of Nigeria (CBN) has begun profiling LGA chairmen and signatories to their bank accounts as part of the process to implement financial autonomy. The CBN’s Director of Legal Services, Kofo Salam-Alada, explained that this step is necessary to ensure financial accountability. However, the Association of Local Governments of Nigeria (ALGON) claims it has not received any communication from the CBN regarding the account-opening process.
Local government chairmen across several states, including Abia, Oyo, Benue, Imo, Kano, Ekiti, Ogun, Osun, and Kwara, have denied receiving invitations for signatory verification or instructions to submit account details. Some chairmen accused the CBN of politicizing the issue, while others expressed readiness to comply once clear directives are issued.
The Supreme Court’s July 2024 judgment affirmed the financial autonomy of LGAs, prohibiting state governors from controlling council funds. However, eight months later, the implementation of this autonomy remains stalled.
The National Union of Local Government Employees (NULGE) has warned the CBN against undermining LGA autonomy, emphasizing that all councils have up-to-date audited financial records. NULGE President Hakeem Ambali urged the CBN to expedite the process, ensuring LGAs receive their allocations directly.
As Delta State leads in submitting account details, other states are expected to follow suit once the AGF provides clear directives. The ongoing consultations aim to resolve the complexities and ensure the effective implementation of LGA financial autonomy.
