The ongoing implementation of the Supreme Court’s landmark judgment granting full autonomy to local governments has encountered a fresh set of challenges, as state governors intensify efforts to block the direct payment of local government allocations through the Central Bank of Nigeria (CBN).
Nearly nine months after the Supreme Court’s ruling, which mandates the direct payment of federal allocations to the 774 local governments, several governors have openly instructed their local government chairmen not to open accounts with the CBN. This move follows the establishment of a panel by the Federal Government to oversee the implementation of local government autonomy, with the CBN tasked with facilitating the process by opening dedicated accounts for each local government.
Despite the government’s commitment, the process has been delayed by accusations of obstruction, with the CBN and local government officials trading blame. A recent meeting of the Federation Account Allocation Committee (FAAC) revealed that only Delta State’s local governments had successfully opened CBN accounts, sparking concerns about the widespread resistance to the policy.
According to sources close to local government chairmen, several governors are pressuring their council officials to avoid opening CBN accounts for the direct receipt of federal funds. A local government chairman from the South-East region revealed that a state governor had explicitly rejected a proposal to allow the councils to open CBN accounts, even when a deal was offered to remit 50 percent of the allocations to the governor’s office each month.
Investigations by The PUNCH suggest that governors are deeply opposed to the move, fearing it would end their long-standing access to local government funds. While a small number of governors appear open to the idea, the overwhelming majority are resisting the autonomy, preferring that local governments continue receiving funds through commercial banks, where state authorities can retain control.
The stringent conditions set by the CBN, such as the submission of two-month account statements from each local government, have also been cited as obstacles. In some states, such as in the South-West, local governments have yet to meet these requirements, citing administrative difficulties.
In Nasarawa State, however, the local government unions have shown strong support for the implementation of autonomy, with all 13 local governments opening CBN accounts, though they are still awaiting the direct transfer of funds. Similar challenges are reported in other states, including Kano, Zamfara, and Yobe, where governors have yet to provide the necessary support for the transition.
Meanwhile, in Jigawa State, local government authorities have assured that they are following the process, with biometric data capture being the last step before finalizing the accounts. The state’s ALGON chairman, Prof. Abdulrahman Salim, emphasized that the CBN is facilitating the process, despite delays due to administrative hurdles.
While some local government workers have expressed frustration at the slow pace of implementation, there is a growing sense that political interests may be hindering the full realization of local government autonomy across the country.
The ongoing tension highlights the deep-seated power struggle between state governors and local government officials, with the future of local government autonomy hanging in the balance.
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