AUTONOMY: CBN to Open Dedicated Accounts for Badagry Local Govt., 773 Other LGs

By Dansu Peter  In a move to strengthen local government autonomy, the 774 local government areas in Nigeria, including Badagry Local Govern...

By Dansu Peter 

In a move to strengthen local government autonomy, the 774 local government areas in Nigeria, including Badagry Local Government, are set to open dedicated accounts with the Central Bank of Nigeria (CBN) for the direct disbursement of federal allocations. This announcement was made by the National President of the Association of Local Governments of Nigeria (ALGON), Bello Lawal Yandaki, who described the initiative as a significant step toward implementing the Supreme Court ruling on direct allocations to local councils.  

Yandaki assured stakeholders that the CBN is prepared to act swiftly once the Federal Government issues the directive to open the accounts. “The accounts can be set up within 24 to 48 hours,” he stated, adding that the delay in fund disbursement is primarily due to the failure of some councils to submit the required bank details to the Federation Accounts and Allocation Committee (FAAC).  

To ensure transparency and accountability, the Nigerian Financial Intelligence Unit (NFIU) will oversee the utilization of the funds, while anti-corruption agencies like the ICPC and EFCC have been tasked with monitoring and prosecuting any cases of financial misconduct by local government officials.  

A source at the FAAC meeting confirmed that N361.754 billion allocated to local governments in January remains undistributed due to administrative bottlenecks. Councils are urged to resolve these issues promptly to avoid further delays.  

Yandaki expressed optimism about the initiative's rollout, noting that extensive consultations with stakeholders, including labor unions and local government representatives, have been concluded. "This January marks the beginning of a new chapter for our councils," he said.  

The Federal Government's decision to bypass state governments in fund disbursement aligns with the Supreme Court's affirmation of local government autonomy. However, challenges remain, with some states like Anambra still operating under laws that channel funds through joint accounts.  

To address potential misuse of funds, stringent measures have been put in place. Local government chairmen are now fully responsible for their financial operations, and any diversion of funds will attract consequences. “This initiative not only protects local government allocations but also holds chairmen accountable for their decisions,” a source noted.  

This development promises to enhance financial transparency, improve grassroots governance, and empower local governments to deliver better services to their communities.