By Jemimah Wellington, JKNewsMedia Reporter
THE IMPLEMENTATION of the Supreme Court ruling affirming financial autonomy for Nigeria’s local government councils has hit significant roadblocks.
The Office of the Accountant General of the Federation (OAGF) said it has identified two major setbacks: the failure of many local governments to submit account details and the challenge of verifying which councils have democratically elected leadership.
Minutes from the Federation Account Allocation Committee Technical Sub-Committee meeting at the weekend, revealed that only Delta State’s 25 local government councils have provided the required account details.
The OAGF, in collaboration with the Office of the Attorney General of the Federation and Minister of Justice, said they have begun discussions to resolve these issues.
The Accountant General of the Federation, Oluwatoyin Madein, emphasised the difficulty in determining which local councils have elected chairmen, a prerequisite for receiving direct allocations. She noted that without this clarity, the implementation of the Supreme Court judgement remains stalled.
“So far, only local governments in Delta State have submitted their account details. Discussions with the Attorney-General’s office on the submission process are still ongoing,” the minutes stated.
The Central Bank of Nigeria (CBN) has also stepped in, initiating a profiling process for local government chairmen and authorised signatories to their accounts.
Director of Legal Services at the CBN, Kofo Salam-Alada, explained that this step is part of standard Know Your Customer (KYC) procedures to ensure financial accountability.
“This is a standard procedure. Anyone authorised to sign on these accounts must be profiled. The process is ongoing, and we are working closely with the Accountant General’s office,” Salam-Alada stated.
However, the Association of Local Governments of Nigeria (ALGON) claims it has not been officially notified about the verification process.
ALGON Chairman in Abia State, Chinesu Ekeke, who also chairs Mayor Isuikwuato LGA, expressed surprise at the development.
“No, we have not been invited for signatory verification. I have not seen any official communication on this, and there has been no word from ALGON headquarters,” Ekeke said.
The National Union of Local Government Employees (NULGE) has also raised concerns, warning that any delay in financial autonomy could be exploited by state governors to retain control over local government funds.
The Supreme Court had ruled on July 11, 2024, that the 774 local government areas in the country must receive allocations directly from the Federation Account.
The judgement barred governors from interfering with council funds, declaring the previous system of withholding allocations unconstitutional.
However, eight months after the ruling, the directive has yet to be fully implemented.
