State governors have escalated their opposition to the direct disbursement of federal allocations to local governments, with new efforts aimed at delaying the implementation of the Supreme Court's verdict on Local Government (LGA) autonomy. This development follows a meeting between several governors and President Bola Tinubu, where the governors lobbied against the proposal to channel LGA funds through the Central Bank of Nigeria (CBN).
According to sources close to the meeting, the governors expressed concerns about the impact on their control over local government funds. They argued that if allocations were paid directly to the CBN, it would essentially allow the Federal Government to maintain control over local government finances. The governors advocated for the funds to be sent to commercial bank accounts instead, a move that would ensure state governments retain some influence over the disbursement.
The Supreme Court's ruling, handed down in July 2024, mandates that federal allocations to LGAs be paid directly into their respective accounts, bypassing state governments. The ruling also declared that only democratically elected local government leaders, not appointed administrators, could receive and manage these funds.
In response to this, the CBN began profiling local government chairmen and opening accounts for each of the 774 local governments. However, the implementation has been slow, with reports of significant delays in the disbursement of funds. Some LGAs are still facing difficulties in meeting the Supreme Court's requirements for the allocation of funds.
The opposition to the court ruling has intensified, with governors reportedly seeking to delay the process to address significant debts allegedly incurred by some local governments. Critics argue that these debts may be used as a pretext for governors to divert local government funds for other purposes.
Meanwhile, the Secretary-General of the Association of Local Governments of Nigeria (ALGON), Mohammed Abubakar, has raised concerns about the potential mismanagement of local government funds, particularly as the CBN reportedly faces challenges in handling claims from creditors who have obtained court judgments against LGAs.
Abubakar also stressed the need for broader consultations with stakeholders, including ALGON and the Nigerian Union of Local Government Employees (NULGE), to ensure that the implementation of the Supreme Court ruling is carried out smoothly and transparently. He called on the Attorney-General's office and other relevant government bodies to engage local government leaders in these discussions, emphasizing that a well-informed, inclusive approach is critical to ensuring the success of financial autonomy for local governments.
As the situation continues to evolve, it remains to be seen how the federal and state governments will navigate the complexities of implementing the Supreme Court's ruling and whether further political maneuvering will delay or hinder the full realization of local government autonomy in Nigeria.
