By Dansu Goldmark In a fresh twist to the ongoing battle over local government autonomy, state governors have reportedly launched a new str...
By Dansu Goldmark
In a fresh twist to the ongoing battle over local government autonomy, state governors have reportedly launched a new strategy to circumvent the Supreme Court’s ruling mandating direct federal allocation to local government councils. The governors, in a high-stakes maneuver, are said to be pressuring President Bola Tinubu to reconsider the implementation process, citing concerns over outstanding multi-billion-dollar debts allegedly incurred by the councils.
According to Punch, Sources close to the Presidency confirmed that a select group of governors held a private meeting with Tinubu at the State House in Abuja last Tuesday, using the opportunity of an Iftar dinner to push for an alternative to the direct disbursement of funds.
“When the governors came on Monday for Iftar, they sought to meet the President, which they did on Tuesday afternoon,” a senior official disclosed. “They were with him for a long time, and they left around past six in the evening.”
At the heart of the latest pushback is the Federal Government’s insistence that all 774 local government councils open accounts with the Central Bank of Nigeria (CBN) for direct allocation payments, a move the governors are fiercely resisting.
“The Federal Government wants the allocations paid into CBN accounts, ensuring transparency in local government financing,” another official familiar with the discussions explained. “But the governors rejected this outright. They argue that such an arrangement effectively keeps local government funds under federal control, which they oppose.”
Instead, the governors are reportedly lobbying for local government allocations to be routed through commercial banks, where they would retain significant influence over the funds, the report by Punch indicates
“One of the governors complained that having the CBN manage the accounts means seeking approval from the Accountant-General of the Federation before accessing funds. To them, this still places control in the hands of the Federal Government,” the source added.
Despite the Supreme Court’s unequivocal ruling on July 11, 2024, that declared state governments’ control over local government allocations unconstitutional, implementation has faced persistent roadblocks. The ruling explicitly stated that only democratically elected local government administrations are entitled to receive and manage federal allocations.
However, nearly nine months after the judgment, direct payments to local governments remain stalled, fueling speculation that governors are deliberately obstructing the process.
Further complicating matters, some governors are reportedly justifying their opposition to direct LGA funding by citing heavy debts allegedly accumulated in the names of the councils. The Secretary-General of the Association of Local Governments of Nigeria (ALGON), Mohammed Abubakar, raised concerns that the governors might be using these debts as a smokescreen to retain financial control over LGAs.
“The Federal Government is also facing its own challenges,” Abubakar noted. “Governors claim that there are liabilities attached to local governments, and they are using this as an excuse to delay the direct disbursement of funds.”
There are growing fears that local government funds might be diverted to settle these alleged debts, further depriving LGAs of their constitutionally guaranteed financial independence.
“The danger is that if this is not handled properly, local government funds may end up in the hands of creditors who obtained court judgments and garnishee orders against the CBN,” Abubakar warned.
Meanwhile, the CBN has come under pressure from various quarters, with accusations that it is aiding governors in delaying financial autonomy. Reports indicate that the apex bank has refused to open accounts for some local councils, citing incomplete auditing processes as a reason.
Despite assurances that the profiling of local government chairmen and financial signatories is underway, stakeholders remain skeptical about the pace of implementation.
“There is this fear that the CBN is in court with multiple consultants who claim to have worked for local governments through ALGON,” Abubakar revealed. “With court judgments already in place, if the funds finally arrive at the CBN, creditors may seize them, leaving LGAs in an even worse situation than before.”
President Tinubu has publicly maintained that his administration is not in conflict with governors over local government autonomy. However, his recent comments urging collaboration suggest he is walking a tightrope between enforcing the Supreme Court’s judgment and placating state executives.
During a New Year meeting with Vice President Kashim Shettima and the Nigerian Governors’ Forum (NGF), Tinubu said, “There were gossips that we had disagreements on local government autonomy. No… Nobody wants to take them away from you, but we need collaboration.”
Observers believe this cautious approach is emboldening governors to continue stalling the process.
With growing uncertainty over the fate of local government autonomy, ALGON and the National Union of Local Government Employees (NULGE) have called for full transparency from the CBN and the Federal Government.
“There is no clear guideline on how LG chairmen should engage with the CBN,” Abubakar pointed out. “We need a structured process with all stakeholders—ALGON, NULGE, and governance experts—at the table.”
Despite the Supreme Court’s ruling, local governments remain at the mercy of state governors, whose latest maneuver threatens to derail a historic opportunity for grassroots financial independence.
For now, all eyes remain on Tinubu’s administration to see whether it will stand firm against the mounting pressure or allow governors to dictate the terms of implementation.
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