The long-awaited implementation of local government autonomy, as mandated by the Supreme Court’s July 11, 2024, judgment, continues to encounter significant obstacles, primarily concerning the submission of local government area (LGA) bank account details for direct allocation disbursement. Despite ongoing consultations between the Account-General of the Federation (OAGF), Oluwatoyin Madein, and the Attorney-General and Minister of Justice, Lateef Fagbemi, SAN, the process is fraught with challenges, notably the identification of LGAs with democratically elected officials.
According to minutes from the Federation Account Allocation Committee (FAAC) Technical Sub-Committee meeting, only Delta State LGAs have thus far successfully submitted their account details to the OAGF. “The Office had started receiving account details from various sources; some directly while others were going through the states. So far, only local governments in Delta State have provided account details,” Madein stated, highlighting the stark disparity in compliance.
The core issue, as revealed in the meeting minutes, lies in the difficulty of verifying which LGAs possess “constitutionally elected chairmen.” Madein emphasized, “This foundational stage remained unclear.” This ambiguity creates a significant legal challenge, as the legitimacy of account submissions hinges on the legality of the local leadership.
“For those with properly elected leadership, the question arose as to what mechanisms would be deployed to ensure they receive direct allocations. This was because numerous complexities needed to be addressed,” Madein further explained. This statement underscores the multifaceted nature of the problem, extending beyond mere account submission to include the establishment of robust, transparent disbursement mechanisms.
The legal dimension is further complicated by the need for clarity from the Attorney-General’s office. The Accountant-General of Niger State (AG Niger) suggested, “Once the AGF provides the necessary modalities, a formal letter should be sent to the OAGF outlining the required steps for local governments to follow in submitting their accounts.” This call for clear, unified guidelines is crucial to prevent inconsistencies and ensure uniformity across all states.
The practical execution of even the most well-intended legal rulings often reveals complex, layered issues. In this case, the shift towards direct LGA allocations, while constitutionally sound, presents a logistical and legal labyrinth.
The Central Bank of Nigeria (CBN) has also initiated steps to facilitate the process, including profiling chairmen and signatories to LGA bank accounts. Kofo Salam-Alada, Director of Legal Services at the CBN, explained, “This is all about standard procedure in the form of KYC (Know Your Customer). Anyone who will be a signatory to the account must be profiled.”
Read Also: CBN Begins Profiling LGA Officials for Account Opening, Amidst Autonomy Hurdles
However, the Association of Local Governments of Nigeria (ALGON) disputes claims of official communication from the CBN regarding account openings. Sam Akala, ALGON’s representative, stated he was “unaware of any official communication from the apex bank regarding the account opening process.” This discrepancy highlights a potential communication gap that needs to be addressed for effective implementation.
One newly elected local government chairman from Ondo State, speaking anonymously, stated that accounts would be submitted after the Joint Allocation Committee meeting. “We are going to submit the accounts to the CBN tomorrow (today) after the JAC meeting,” he confirmed.
The delay in implementing this crucial judgment has real-world implications. For citizens at the local level, this translates to potential delays in essential services and development projects. The emotional toll of bureaucratic hurdles can be significant, as communities eagerly await the benefits of financial autonomy.
The ongoing consultations between the OAGF and the AGF are critical. As we navigate these complexities, it’s vital to remember that the ultimate goal is to empower local governments and improve the lives of citizens. Clear communication, robust legal frameworks, and efficient administrative processes are essential to achieving this objective.
