The Federal Government has explained the delay in the direct disbursement of funds to the 774 Local Government Areas despite the Supreme Court’s ruling granting them financial autonomy.
According to the government, the delay is due to the ongoing process of profiling individuals who will serve as signatories to the LGAs’ accounts.
The Attorney General of the Federation and Minister of Justice, Prince Lateef Fagbemi represented by the Director of Civil Litigation at the Federal Ministry of Justice, Tijjani Gazali, stated this at a state-of-the-nation discourse on strengthening local government autonomy in Nigeria, organised by the Nigerian Bar Association on Wednesday.
A Senior Advocate of Nigeria, Fagbemi added that an implementation committee was set up following the Supreme Court’s 11 July 2024 judgment.
The committee, which includes representatives from the Federal Government, the Association of Local Governments of Nigeria and the Nigerian Governors’ Forum, has been working on a framework for the full implementation of the ruling, particularly regarding the direct payment of allocations from the Federation Account to LGAs.
‘The committee is expected to complete its mandate any time from now and present its recommendations to Nigerians,’ the AGF stated, adding that President Bola Tinubu’s administration remains committed to granting LGAs full autonomy.
However, the AGF condemned the continued illegal removal of democratically elected local government councils by some state governors, despite the Supreme Court’s ruling against such actions.
He described this as “worrisome,” criticising the “unconstitutional connivance by state governors and their State Houses of Assembly to dismantle democratically elected local government structures without recourse to the rule of law and replace them with their stooges.
‘Let me state unequivocally that this act is tantamount to treason and must be treated as such. While it is true that Section 308 of the Constitution grants governors immunity from prosecution, I wish to be clear that this flagrant disobedience to the Supreme Court judgment will have unpleasant consequences for the state as a whole, should it persist,’ he warned.
Providing further insight into the delayed fund disbursement, the Director of Legal Services at the Central Bank of Nigeria, Salam-Alade, said the apex bank had no direct banking relationship with the LGAs.
Salam-Alade explained that the bank had begun profiling individuals who would serve as signatories to the LGAs’ accounts, a necessary step to ensure financial accountability.
He stated, ‘This is all about standard procedure in the form of KYC (Know Your Customer). Anyone who will be a signatory to the account must be profiled. The process is ongoing, and we are collaborating with the AGF’s office. We have also written to the LGAs.’
He urged ALGON to encourage its members to engage with the CBN at the local level, assuring that once proper documentation is completed, the accounts will be operational within 48 hours.
‘We are using this opportunity to call on the 774 local government chairmen to come forward for their documentation. No account can be operationalised without the prerequisite Customer Due Diligence (CDD),’ he added.
However, ALGON’s representative at the event, Sam Akala, disputed the CBN’s claim, stating that he was unaware of any official communication from the apex bank regarding the account-opening process.
‘I cannot confirm that such communication has been received officially,’ he said, while affirming ALGON’s readiness to embrace its new role in grassroots development.
In his welcome remarks, NBA President Mazi Afam Osigwe emphasised the need for full local government autonomy, warning that failing to strengthen governance at the grassroots level could lead to greater national challenges.
Osigwe warned, ‘There must be democracy at the local government level. All other tiers of government must allow the LGs to breathe. If we fail to get it right at the LG level, we may be setting the stage for a greater calamity.’
