A significant number of state governors are blocking the implementation of the Supreme Court judgment granting full autonomy to Nigeria’s 774 local governments.
The governors are explicitly warning their council chairmen against opening accounts with the Central Bank of Nigeria (CBN) for direct payment of federal allocations.
According to investigations, the governors fear that opening CBN accounts would sever their access to local government funds, which they have long controlled.
Many council chairmen have confirmed that their governors have instructed them not to open CBN accounts, with some even resorting to intimidation and coercion.
One chairman in the South-East region revealed that his governor refused to accept 50% of monthly allocations, which was part of an agreement to facilitate opening CBN accounts.
The chairman stated, “Our governor has threatened us not to open accounts with the CBN for direct payment of our allocation”.
Stringent Conditions
The CBN’s requirements for opening accounts are also a major hurdle. One condition is the submission of a two-month statement of account from each local government area, which many councils cannot meet.
A chairman in the South-West region explained, “All council areas here in our state can’t meet up… most states can’t meet up because their governors are the ones spending their allocation.”
However, some states are making progress. In Nasarawa State, the Nigerian Union of Local Government Employees (NULGE) has said it is fully compliant with the directive to open accounts and is prepared to receive funds from the Federal Government.
The NULGE Chairman noted that the state government and House of Assembly are working together to ensure local government autonomy is fully realized.
Concerns are also being raised about the Federal Government’s role in implementing the Supreme Court’s judgment.
A local government chairman in Benue State alleged that certain parties are working together to hinder the process, pushing for council chairmen to open accounts in commercial banks instead of the CBN.
The implementation of local government autonomy remains a significant challenge in Nigeria, with governors resisting the opening of CBN accounts and the CBN’s stringent conditions posing additional hurdles.
While some states are making progress, the Federal Government must clarify its stance and ensure that the Supreme Court’s judgment is fully implemented to grant local governments the autonomy they need to function effectively.