Nine months after the Supreme Court ruled in favor of full financial autonomy for Nigeria’s 774 local government areas (LGAs), the implementation process continues to face significant setbacks. A major obstacle has emerged as several state governors are reportedly instructing their council chairmen not to open Central Bank of Nigeria (CBN) accounts for the direct receipt of federal allocations.
According to findings, the directive from the Federal Government, based on the recommendations of an implementation panel, mandated the opening of CBN accounts to ensure compliance with the court’s ruling. However, implementation has stalled due to opposition from some governors, who view the move as a threat to their access and control over LG funds.
While Delta State stands out as the only state that has submitted full LG account details, many council chairmen in other regions, including the South-East and South-West, claim they’ve faced threats and coercion from their governors to halt compliance. One chairman in the South-East disclosed that even an offer to remit 50% of their allocation back to the governor was rejected.
In Nasarawa, the Nigerian Union of Local Government Employees (NULGE) reports full readiness, but no LGA has received direct allocations yet. Similarly, in states like Kwara, Yobe, Zamfara, Kano, and Benue, local councils remain in limbo, citing lack of CBN verification, stringent account requirements, and alleged sabotage from within state structures.
While the Federal Government insists on adherence to the Supreme Court judgment, many governors prefer commercial banks for LG accounts, a move seen by observers as an attempt to maintain financial influence.
Notably, the ALGON in Jigawa assured that account opening is underway, attributing delays to administrative issues, including pending biometric capture appointments by the CBN.
With stakeholders divided and transparency questioned, the fate of local government autonomy in Nigeria hangs in the balance, raising concerns about the rule of law, governance, and equitable development across the country.
