The Accountant-General of the Federation (AGF), Oluwatoyin Madein, and the Attorney-General and Minister of Justice, Lateef Fagbemi, SAN, have begun discussions on implementing the Supreme Court’s July 11, 2024, judgment on local government autonomy.
However, the direct allocation of funds to the 774 local government areas (LGAs) remains stalled due to bureaucratic challenges.
Challenges in Direct Disbursement
According to minutes from the Federation Account Allocation Committee (FAAC) Technical Sub-Committee meeting, only LGAs in Delta State have fully submitted their bank account details to the AGF’s office.
This was confirmed at the January 17, 2025, FAAC meeting at the Federal Ministry of Finance headquarters in Abuja.
The AGF noted that while some LGAs submitted their details directly, others did so through their state governments. However, complications persist due to difficulties in identifying LGAs with democratically elected officials.
AGF Madein highlighted that one of the major obstacles is determining which LGAs have properly elected leadership, as financial autonomy requires a functional governance structure at the local level. The AGF’s office has sought clarification from the Attorney-General to outline a formal process for verifying and submitting these accounts.
State Governments’ Role and Delays
The Accountant-General of Niger State suggested that once the AGF finalizes the required modalities, a formal directive should be sent to the OAGF. Without clear guidelines, states may implement the process inconsistently, leading to discrepancies in local government financial autonomy.
With Delta State LGAs leading the way in account submission, other states are expected to follow suit once clear directives are provided by the AGF. An Ondo State LGA chairman, speaking anonymously, revealed that their bank account details would be submitted to the Central Bank of Nigeria (CBN) after the Joint Allocation Committee (JAC) meeting.
CBN’s Verification and ALGON’s Concerns
The CBN has started profiling local government chairmen and signatories to the LGA bank accounts as part of the autonomy implementation process. Kofo Salam-Alada, Director of Legal Services at CBN, stated that this verification aligns with standard financial regulations to ensure accountability.
However, the Association of Local Governments of Nigeria (ALGON) claims it has not received official communication from the CBN regarding the opening of LGA accounts. ALGON officials across multiple states, including Abia, Oyo, Benue, Imo, Kano, Ekiti, Ogun, Osun, and Kwara, deny being contacted by the CBN for signatory verification.
ALGON’s Chairman in Abia State, Chinesu Ekeke, stated, “We have not been invited for signatory verification. No official communication has reached us.” A similar sentiment was echoed by ALGON’s representatives in Oyo, Benue, and other states, who accused the CBN of politicizing the process.
NULGE Calls for Full Implementation
The National Union of Local Government Employees (NULGE) has warned the CBN against enabling state governors to undermine local government autonomy. NULGE President Hakeem Ambali dismissed reports that LGAs had failed to provide audited financial accounts, insisting that most councils have at least three years of audited records ready for submission.
Next Steps and Outlook
Despite the Supreme Court ruling prohibiting state governors from controlling local government funds, implementation remains slow. The AGF and CBN are expected to finalize guidelines for account verification and direct disbursement soon. Meanwhile, stakeholders, including ALGON and NULGE, continue to push for full compliance with the court’s judgment.
As discussions progress, local governments across the country await concrete steps from the Federal Government to ensure the long-awaited financial autonomy becomes a reality.