The Office of the Accountant General of the Federation (OAGF) has identified key challenges hindering the implementation of the Supreme Court’s July 11, 2024, ruling on local government autonomy.
According to the government agency, two major obstacles include the failure of local government areas (LGAs) to submit their account details and the need to verify which LGAs have democratically elected leadership—a prerequisite for receiving direct federal allocations.
This issue was highlighted during the Federation Account Allocation Committee Technical Sub-Committee meeting, chaired by Accountant General Oluwatoyin Madein.
Only Delta State Submits Account Details
Out of Nigeria’s 774 local government councils, only Delta State’s 25 LGAs have submitted their account details for direct payment.
“So far, only local governments in Delta State have provided account details,” the minutes of the meeting revealed. “However, consultation with the Attorney General of the Federation on the modalities of the submission of accounts is still ongoing.”
Addressing the challenge, Madein explained that while a system for direct payment was being developed, verifying which LGAs have constitutionally elected chairmen remained a major hurdle. She also noted that additional mechanisms were needed to ensure proper fund allocation.
CBN Profiling Local Government Accounts
As part of efforts to implement local government autonomy, the Central Bank of Nigeria (CBN) has begun profiling the chairmen and signatories of LGA bank accounts.
CBN’s Director of Legal Services, Kofo Salam-Alada, emphasized the importance of financial accountability in the process, stating, “This is a standard Know Your Customer (KYC) procedure. Anyone who will be a signatory to an LGA account must be profiled. The process is ongoing in collaboration with the AGF’s office.”
However, the Association of Local Governments of Nigeria (ALGON) claims it has received no formal communication from the CBN regarding the verification process. Abia State ALGON Chairman, Chinesu Ekeke, stated, “We have not been invited for signatory verification. I have not heard of it from any official source.”
Financial Autonomy Yet to Take Effect
Despite the Supreme Court ruling affirming the financial independence of Nigeria’s 774 LGAs and prohibiting state governors from controlling council funds, implementation has yet to take full effect eight months later.
The National Union of Local Government Employees (NULGE) has warned the CBN against enabling state governors to undermine LGA financial autonomy.
With ongoing consultations between the OAGF, Attorney General’s office, and CBN, stakeholders are eager to see the long-awaited reform materialize, ensuring that local governments receive their rightful allocations directly.
