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Govs block council chairmen from opening CBN accounts despite Supreme court ruling on LG autonomy

Published 1 month ago3 minute read

The implementation of the Supreme Court’s judgment granting full autonomy to Nigeria’s 774 Local Government Areas, LGAs, is facing significant obstacles, especially from state governors.

Nearly nine months after the court ruled in favour of direct federal allocations to LGAs, the move has met strong resistance from many state governments. Governors in several states have allegedly warned their local government chairmen against opening accounts with the Central Bank of Nigeria, CBN, which is a crucial step for the direct payment process.

To enforce the ruling, the Federal Government formed a panel that recommended the opening of dedicated CBN accounts for all LGAs. However, progress has been slow, with only Delta State, it was learned, submitting its LGAs’ account details. One major challenge is the difficulty in identifying LGAs with democratically elected officials, a requirement for account opening.

It was gathered that some governors are intimidating council chairmen to avoid compliance. One anonymous chairman from the South-East revealed that even after proposing to remit 50 percent of their allocation back to the governor in exchange for permission to open CBN accounts, the offer was rejected. Many governors, it was learned, fear losing control over local government funds, which they have traditionally managed through joint state-local government accounts.

Governors have met with President Bola Tinubu, lobbying for LGAs to use commercial banks instead, where state governments can maintain influence. There is still no clear indication of the President’s position on the matter.

In some cases, CBN’s conditions for account opening have added to the delay. A chairman from the South-West cited the CBN’s demand for two-month account statements, which many LGAs couldn’t provide due to governors managing their finances. Similarly, in Benue, chairmen believe that certain actors are deliberately stalling the process to prevent financial autonomy.

Despite the widespread resistance, Nasarawa State has shown some compliance. The local chapter of the Nigerian Union of Local Government Employees, NULGE, confirmed that CBN accounts had been opened for LGAs, though direct allocation had not yet begun. However, another chairman in the same state accused the federal government of failing to follow through by continuing to send funds to joint accounts.

In Kwara State, the NULGE chairman said none of the 16 LGAs had opened CBN accounts and expressed uncertainty about the state government’s stance. Similar situations were reported in Yobe and Zamfara, where allocations and salaries are still routed through state ministries. Zamfara’s ALGON chairman confirmed they were awaiting directives before opening CBN accounts.

In Kano State, none of the 44 LGAs has opened a CBN account, with officials saying they haven’t been contacted for verification. However, Jigawa appears to be progressing. ALGON chairman Prof. Abdulrahman Salim stated that the process is ongoing and nearing completion, pending biometric capturing by the CBN.

In summary, while a few states are cooperating, the broader implementation of local government autonomy remains hampered by political resistance, procedural delays, and power struggles between federal and state authorities.

Origin:
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The Street Journal
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