The battle for the enforcement of local government (LG) autonomy, nearly nine months after a landmark Supreme Court judgment, has encountered a fresh obstacle as some state governors have reportedly barred council chairmen from opening Central Bank of Nigeria (CBN) accounts for the direct receipt of federal allocations.
This latest twist in the autonomy saga threatens to stop the implementation of the July 11, 2024, Supreme Court ruling that granted financial independence to the country’s 774 local government areas, recognizing them as a constitutionally guaranteed third tier of government.
In line with the Federal Government’s pledge to implement the ruling, a dedicated panel was constituted to oversee compliance. One of the key recommendations of the panel was for the CBN to open designated accounts for all LGAs to facilitate the direct transfer of funds from the Federation Account.
However, a series of delays and disagreements between the apex bank and LG representatives have slowed the process. Recent meetings involving the Attorney-General of the Federation, Lateef Fagbemi, SAN, and the former Accountant-General of the Federation, Oluwatoyin Madein, have yet to yield a clear path forward.
A technical sub-committee of the Federation Account Allocation Committee recently disclosed that, of all 36 states, only Delta State LGAs have submitted account details for the CBN account opening.
Fresh findings have revealed a new layer of resistance, as several governors are said to be using threats and intimidation to dissuade their local government chairmen from complying with the Supreme Court ruling.
Multiple chairmen, who requested anonymity due to fear of retribution, confirmed that their respective state governors have issued direct orders against opening the required accounts.
“Our governor has threatened us (all the chairmen in the state) not to open accounts with the CBN for the direct payment of our allocation,” one South-East chairman disclosed.
According to him, attempts were made to reach a compromise.
“We even tried to beg him, seeking to strike a deal, such that if he allows us to open the account with the CBN and our allocations are paid directly, we will remit 50 per cent of the LG allocation to him monthly, but he disagreed. So, this is where we are for now,” the chairman added.
The resistance appears rooted in concerns among governors over losing access to LG funds, which many have traditionally managed or disbursed. While a few governors are reportedly open to allowing the CBN accounts, the majority remain opposed.
In the South-West, another LGA chairman cited technical difficulties and compliance challenges as contributing factors to the delay.
“One of the stringent demands is the submission of a two-month statement of account from each local government area, which was not available,” the chairman said.
“But as simple as that condition may look, all council areas here in our state can’t meet up. The situation is not peculiar to our state. If you check well, most states can’t meet up simply because their governors are the ones spending their allocation. They are only giving those in LGAs whatever they feel like giving them. That is the problem,” he added.
In Benue State, a chairman echoed similar frustrations.
“Chairmen across the country are aware that state governors are trying to frustrate the financial autonomy of local government areas. What they are pushing for is for council chairmen to open their accounts in commercial banks where they can easily have access to control the councils’ money,” he said.
“They know that the moment the money is paid to CBN, it will go directly to us, and they will not have access to it. So, that is the reason the governors are frustrating the move.”