Reports that Local Governments in Nigeria have begun the process of opening accounts with the Central Bank of Nigeria, CBN, to enable them receive direct Federal allocations, is indeed cheery.
Local governments across the Nigeria are believed to have been ‘suffocating’ under the alleged chokehold of state governors who have been severally accused of meddling in LGs’ finances.
The move to ensure that LGAs in Nigeria get their allocations directly from Abuja, follows the judgement of the Supreme Court on July 11, 2024, that affirmed the financial autonomy of Nigeria’s774 LGAs.
The Supreme Court had in the judgement, declared as unconstitutional, the practice of governors controlling Local Government funds, and directed that allocations be paid directly into local governments’ accounts as opposed to the hitherto practice of LGs’ allocations paid into state local governments Joint Accounts.
It is however, disheartening that despite the apex court’s verdict, reports pointed to governors allegedly continuing to manage Local Governments’ funds six months after the judgment.
The unhealthy development has contributed albeit negatively by retarding the growth and progress of the councils. Surprisingly, some state governors have reportedly exhibited indisposition to the idea of Local Government autonomy.
Therefore , the directive from the Association of Local Governments of Nigeria, ALGON, requesting Local Governments’ to open accounts with CBN to enable them receive allocations directly, is indeed laudable.
The Federal Government of President Bola Tinubu should ensure that the process of guaranteeing the financial autonomy of LGAs is brought to a logical conclusion.
This move is expected to rejuvenate rural economies.
It is our submission however that the Local Governments on their own part, should ensure effective and judicious utilisation of councils’ fund in line with their respective annual budgets.
