Eight months after the Supreme Court’s landmark ruling affirming the financial autonomy of Nigeria’s 774 local government areas (LGAs), implementation remains stuck in bureaucratic limbo. The reason? A staggering 749 LGAs have yet to submit their account details, blocking the federal government’s ability to send funds directly to them.
At the heart of the issue, according to the Office of the Accountant General of the Federation (OAGF), are two major roadblocks:
- Missing Account Details: Without official bank accounts on file, direct payments to LGAs are impossible.
- Leadership Uncertainty: Many LGAs do not have democratically elected chairmen, a key requirement for receiving funds.
Delta Leads the Pack, Others Linger in Limbo
While most LGAs remain unresponsive, Delta State has taken the lead, with all 25 of its LGAs successfully submitting their account details for direct payment.
“So far, only local governments in Delta State have provided account details,” the minutes from a Federation Account Allocation Committee Technical Sub-Committee meeting revealed. The meeting, chaired by Accountant General Oluwatoyin Madein, confirmed that discussions are ongoing with the Attorney General of the Federation to finalize the process.
CBN Steps In, But ALGON Says, “We Know Nothing About It”
To ensure financial transparency, the Central Bank of Nigeria (CBN) has started profiling local government chairmen and the signatories to their accounts. According to CBN’s Director of Legal Services, Kofo Salam-Alada, this step is standard procedure under Know Your Customer (KYC) policies.
“This is all about accountability. Anyone who will be a signatory to an LGA account must be verified,” Salam-Alada stated.
However, the Association of Local Governments of Nigeria (ALGON) claims it has received no official word on this process. Abia State ALGON Chairman, Chinesu Ekeke, expressed surprise, saying, “We have not been invited for signatory verification. This is news to me.”
Autonomy or Illusion? Governors Still Hold the Reins
The Supreme Court’s July 2024 ruling was hailed as a victory for local government independence, barring governors from controlling LGA funds. Yet, despite the clear directive for the Accountant General of the Federation to transfer funds directly, implementation has remained elusive.
Meanwhile, the National Union of Local Government Employees (NULGE) has warned the CBN against any backdoor deals that might enable governors to maintain financial control over the councils.
With 749 LGAs yet to step up, the question remains: Is local government autonomy a reality in the making or just another legal win without execution? For now, all eyes are on the federal government as Nigerians wait to see if the third tier of government will finally break free from state control.
