The difficulties surrounding the implementation of the Supreme Court’s ruling on local government autonomy have taken a new turn, as numerous state governors have cautioned their council chairmen not to open accounts with the Central Bank of Nigeria (CBN) for receiving their allocations directly from the Federation Account.
This latest situation presents a formidable challenge, almost nine months after the Supreme Court awarded full autonomy to all 774 local governments nationwide, allowing for direct federal allocation payments.
In response to the Supreme Court ruling, the Federal Government formed a panel to oversee the execution of local government autonomy. Following its recommendations, the panel instructed the CBN to create accounts for the 774 local governments to facilitate direct allocation payments. However, the implementation has been delayed, with accusations exchanged between the CBN and local governments.
Recently, the former Accountant-General of the Federation, Oluwatoyin Madein, along with the Attorney-General and Minister of Justice, Lateef Fagbemi, SAN, began discussions on how local governments could open accounts with the CBN for direct allocations, but are encountering challenges identifying local governments with properly elected officials. Reports indicate that only local governments in Delta State have provided the necessary account details.
Amidst these issues, new investigations revealed that some governors are using intimidation tactics, pressuring local government chairmen to avoid opening accounts for direct allocation payments. Several chairmen, who preferred to remain anonymous due to fears of retaliation, expressed that their governors have explicitly instructed them against establishing accounts with the CBN for receiving their allocations directly.
One chairperson from the South-East shared that a governor in the region had rejected an agreement to allow 50 percent of the monthly allocations to be remitted to him in exchange for permitting the opening of the accounts for direct payments. “Our governor has warned us not to open accounts with the CBN,” stated one chairperson, who remained unnamed due to safety concerns. “Despite attempts to negotiate, he refused to consider our proposal, and now we find ourselves stuck.”
Further findings suggest that many governors are opposed to enabling CBN accounts, fearing that it would cut off their access to local government funds, while only a few appear supportive of such measures. Reports indicate that governors recently communicated to President Bola Tinubu their preference for local governments to use commercial banks instead of the CBN. It remains unclear whether the President supports this viewpoint.
Additionally, a local government chairmen in the South-West highlighted that the CBN’s stringent requirements have hindered account openings, especially the need for a two-month account statement that many local governments do not possess.
Chairmen from various local governments have also pointed to additional obstacles, with one from Benue State indicating that certain groups are actively trying to obstruct the process. They suspect that governors prefer local government chairmen to maintain accounts at commercial banks where they can retain greater control over the funds.
Conversely, the Nigerian Union of Local Government Employees (NULGE) in Nasarawa State affirmed its commitment to opening accounts and is ready to receive federal funds. NULGE Chairman Adamu Sharhabilu reported that local government accounts have been established, though funds have yet to be received directly from the Federal Government.
Another local government chairman attributed the delayed allocations to the federal government, as he pointed out that the federal allocation committee is responsible for delivering funds directly to local governments rather than through joint accounts.
Additionally, several local government leaders were found to be unaware of the current stage of policy implementation. For example, Seun Oyinlade, the chairman of the Nigeria Union of Local Government Employees in Kwara State, stated no council in the region has opened a CBN account, and suspicions regarding governor resistance to direct payments have yet to be verified.
In Yobe State, a local government worker revealed that salaries were paid via the Ministry for Local Government rather than directly from local government accounts, highlighting setbacks in implementing the Supreme Court’s ruling.
Meanwhile, local government chairmen in Zamfara noted they have not opened CBN accounts and are awaiting further instructions before proceeding. The ALGON chairman in Jigawa State denied the allegation of governors discouraging account openings, affirming that the process is ongoing and that steps have been taken to adhere to the directive for local government accounts with the CBN.
Nonetheless, complications remain, as the CBN has yet to set a date for biometric data capturing, which is necessary for finalizing account openings for some local governments. The local government officials remain hopeful that the required procedures will soon be completed.
