By Dansu Peter The Central Bank of Nigeria (CBN) has commenced the profiling of signatories for local government accounts in preparation fo...
By Dansu Peter
Speaking at a national discourse on strengthening local government autonomy organized by the Nigerian Bar Association (NBA), the AGF stated that, despite the Supreme Court's judgment mandating direct allocations to LGAs, the necessary structures for implementation are still being put in place. The AGF, represented by the Director of Civil Litigation, Federal Ministry of Justice, Tijjani Gazali, SAN, noted that an implementation committee was set up following the landmark judgment to ensure the seamless execution of the ruling.
The committee, which includes representatives from the Federal Government, the Association of Local Governments of Nigeria (ALGON), and the Nigerian Governors Forum (NGF), is tasked with developing the most practicable framework for direct disbursement of funds to LGAs. The AGF reaffirmed President Bola Tinubu's commitment to ensuring the full independence of local governments, emphasizing that the administration had taken the matter to the Supreme Court to protect the third tier of government from undue state interference.
However, the AGF expressed concern that, despite the apex court's ruling, some state governments continue to illegally dissolve elected local government councils and install caretaker committees. He condemned this practice, describing it as a gross violation of the law and warning that such actions could have serious consequences.
"This unconstitutional manipulation of local government structures by state governments must stop. It is treasonous and will not be tolerated. While governors enjoy immunity from prosecution under Section 308 of the Constitution, their states will bear the brunt of any continued defiance of the Supreme Court ruling,” Fagbemi warned.
In his remarks, CBN's Director of Legal, Kofo Salam-Alade, provided further insights into the ongoing process, revealing that the apex bank had no prior banking relationship with the LGAs. He explained that the CBN is currently profiling those who will serve as signatories to the respective LGA accounts to ensure transparency and accountability in the disbursement of funds.
“This is part of the Know Your Customer (KYC) and Customer Due Diligence (CDD) processes. We are working closely with the AGF’s office and have written to the LGAs, urging them to approach the CBN in their respective localities for documentation. The process takes only 48 hours once all requirements are met,” Salam-Alade said.
Despite CBN’s assurances, ALGON’s representative at the event, Sam Akala, stated that he was not aware of any formal communication from the apex bank regarding the account opening process. He, however, reaffirmed ALGON’s commitment to ensuring local governments have direct access to their funds for grassroots development.
NBA President Mazi Afam Osigwe, SAN, stressed the importance of full autonomy for LGAs, stating that financial independence is crucial to ensuring peace, security, and development at the grassroots level.
“There must be democracy at the local government level. All tiers of government must allow the LGAs to function independently. Failure to do so will only set the stage for greater crises,” Osigwe warned.
The event, attended by Attorneys General of various states, top legal practitioners, and government officials, featured a keynote address by retired Supreme Court Justice Ejembi Eko, who underscored the necessity of adhering to constitutional provisions on local government autonomy.
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