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LG Autonomy: Governors Threaten Council Chairmen, Coerce Them to Defy Order to Open CBN Account to Frustrate FG

By Dansu Peter  Efforts to implement local government autonomy as ordered by the Supreme Court have encountered fierce resistance from seve...

By Dansu Peter 

LG Autonomy: Governors Threaten Council Chairmen, Coerce Them to Defy Order to Open CBN Account to Frustrate FG

Efforts to implement local government autonomy as ordered by the Supreme Court have encountered fierce resistance from several state governors, who are now reportedly issuing threats and applying pressure on local government chairmen to sabotage the Federal Government’s directive to open dedicated accounts with the Central Bank of Nigeria (CBN) for direct allocation payments.

Nine months after the Supreme Court affirmed the financial independence of the 774 local government areas (LGAs) across the country, some governors have allegedly resorted to coercive tactics, warning council chairmen against complying with the apex court’s ruling—a move seen as a deliberate ploy to frustrate the Federal Government’s efforts at strengthening LG autonomy.

Punch says it's investigations revealed that some governors are afraid that the direct transfer of funds to LGs via CBN accounts will cut off their control over billions in local allocations. A council chairman from the South-East confided anonymously that his governor outright rejected a compromise that would have seen the LGs remit 50 percent of their funds back to the state after receiving full allocations directly from the CBN. “Our governor has threatened us not to open accounts with the CBN,” he said. “We even offered to remit half of the allocation back to him monthly, but he refused.”

The development underscores growing tensions between the Federal Government and some state executives who are reluctant to lose their grip on LGA finances. Only Delta State has reportedly complied by submitting account details, while others lag behind due to either administrative delays or direct obstruction by their governors.

At the core of the issue is the Federal Government’s move to enforce the Supreme Court judgment by setting up a panel that directed the CBN to create accounts for each local government. But the process has met several roadblocks, including the identification of LGs with democratically elected officials and accusations between the CBN and LG authorities over who is stalling implementation.

Sources from various regions narrated how governors have used threats and bureaucratic delays to ensure the CBN account process is halted. In Benue State, an LGA chairman alleged that governors prefer the use of commercial banks where they can retain influence. “They know once funds hit the CBN accounts, they lose access,” he said.

In Nasarawa State, despite claims by the NULGE chairman, Adamu Sharhabilu, that all LG accounts have been opened in anticipation of receiving federal allocations, payments have continued to be routed through the state’s joint account, contrary to the Supreme Court’s ruling. A local government chairman from the state blamed the Federal Government for not following through on the directive to bypass the joint accounts entirely.

In Kwara, the NULGE chairman, Seun Oyinlade, stated that none of the 16 LGAs had opened CBN accounts, and uncertainty surrounds the state governor's stance. “We’ve heard rumors of governor interference, but we’ve not confirmed them,” he said.

In Zamfara, the chairman of the state’s ALGON, Alhaji Samaila Moriki, said council chairmen were still “awaiting directives” before opening accounts, suggesting further delays despite the readiness of CBN accounts.

The case is the same in Kano where none of the 44 LGAs have opened CBN accounts. Garko LGA chairman, Saminu Garko, said there had been no invitation from the apex bank to initiate verification or finalise the process.

In contrast, the ALGON chairman in Jigawa State, Prof. Abdulrahman Salim, refuted claims of executive interference, assuring that their LGAs were cooperating fully and nearing completion of the account opening process. “Only biometric data capturing remains,” he said, noting that chairmen are waiting for the CBN to fix dates.

However, a NULGE official in the state, speaking anonymously, cast doubt on the sincerity of the process, remarking, “It wouldn’t surprise us if governors are still working behind the scenes to derail autonomy.”

Meanwhile, local government workers in Damaturu, Yobe State, lamented the continued payment of salaries through the Ministry for Local Government and Chieftaincy Affairs, bypassing their newly opened CBN accounts. They described this as a major setback to true autonomy and a reflection of the broader national struggle to enforce the Supreme Court ruling.

Despite federal efforts, including recent talks involving the Attorney-General and other top officials, the path to local government financial independence remains riddled with resistance, intimidation, and bureaucratic sabotage, threatening to undermine a landmark judicial victory meant to bring governance closer to the grassroots.

Credit: Punch 

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