Story by Iyiola Ayomide
Nigeria’s Office of the Accountant General of the Federation has identified major obstacles hindering the implementation of the July 11, 2024 Supreme Court judgment on local government councils’ autonomy. The two main challenges are the failure of Local Government Areas (LGAs) to submit their account details and the difficulty in identifying democratically elected LGAs, which is a prerequisite for receiving direct payments.¹
According to the minutes of the Federation Account Allocation Committee Technical Sub-Committee meeting, only Delta State, with 25 LGAs, has submitted its account details for direct payment. The meeting, chaired by Accountant General of the Federation (AGF) Oluwatoyin Madein, highlighted the need for consultation with the Attorney General of the Federation to address the setbacks.
The AGF’s office and the Office of the Attorney General of the Federation and Minister of Justice have commenced discussions to resolve the issues. However, the Association of Local Governments of Nigeria claims it has not received any communication from the Central Bank of Nigeria regarding the opening of bank accounts for LGAs.
The Central Bank of Nigeria had begun profiling chairmen and signatories to LGAs’ bank accounts to ensure financial accountability. The Director of Legal Services at the CBN, Kofo Salam-Alada, explained that this was a standard procedure to ensure transparency.
The National Union of Local Government Employees has warned the CBN against aiding state governors in undermining the financial autonomy of local government councils. The union’s concerns highlight the need for a transparent and accountable system to ensure the effective implementation of the Supreme Court judgment.