The challenges facing the implementation of the Supreme Court judgment on local government autonomy have assumed a new dimension, with some state governors explicitly warning their council chairmen against opening an account with the Central Bank of Nigeria for the direct payment of their allocations from the Federation Account.
The latest development represents yet another significant hurdle, nearly nine months after the Supreme Court granted full autonomy to the 774 local governments across the country, paving the way for direct payment of federal allocations.
As part of the Federal Government’s commitment to the Supreme Court judgment, a panel was set up to ensure the implementation of LG autonomy.
In line with its recommendation, the panel directed the Central Bank of Nigeria to open accounts for the 774 LGs for direct payment of their allocation.
This process has, however, faced delays with the CBN and LGs trading accusations.
The immediate-past Account-General of the Federation, Oluwatoyin Madein and the Attorney-General and Minister of Justice, Lateef Fagbemi, SAN, and other officials recently commenced talks on the modalities for the LGAs to open accounts with the CBN for direct allocation but are reportedly facing challenges identifying LGAs with democratically elected officials.
A Federation Account Allocation Committee Technical Sub-Committee meeting revealed that only Delta State LGAs had submitted their account details.
Amid the controversy, fresh investigations revealed that some governors have resorted to intimidation and coercion, pressuring their local government chairmen to refrain from opening the designated accounts for direct allocation payment.
Several local government chairmen who spoke with our correspondents on the condition of anonymity, out of fear of victimisation, said their respective governors have instructed them not to open accounts with the CBN for the direct receipt of their allocations.
One chairman revealed that a governor in the South-East region refused to accept 50 percent of the monthly allocations, which was part of the agreement intended to facilitate the opening of the accounts for direct payment.
“Our governor has threatened us (all the chairmen in the state) not to open accounts with the CBN for the direct payment of our allocation”, one of the chairmen of South-East states, who pleaded anonymity, told one of our correspondents.
“We even tried to beg him, seeking to strike a deal, such that if he allows us to open the account with the CBN and our allocations are paid directly, we will remit 50 per cent of the LG allocation to him monthly, but he disagreed. So, this is where we are for now,” the LG chair added.
Further investigations reveal that a significant number of governors are strongly opposed to the opening of CBN accounts, fearing it would sever their long-standing access to local government funds.
However, a negligible number of governors are said to be disposed to the idea of their LGAs opening the CBN accounts.
