Financial Autonomy: Nigerian Govt Says 749 LGAs Have Not Provided Account Details
The Office of the Accountant General of the Federation (OAGF) has highlighted major obstacles in implementing the Supreme Court’s July 11, 2024, ruling on local government autonomy.
According to the OAGF, two major challenges are hindering the process: the failure of Local Government Areas (LGAs) to submit their account details and the difficulty in identifying which councils have democratically elected chairmen.
These are essential prerequisites for direct fund allocation.
This was disclosed in a Federation Account Allocation Committee (FAAC) Technical Sub-Committee meeting, chaired by the Accountant General of the Federation, Oluwatoyin Madein.
Delta State Leads in Compliance
So far, only Delta State, which has 25 local governments, has submitted account details for direct fund disbursement.
The OAGF and the Office of the Attorney General of the Federation (AGF) are now working together to resolve these setbacks.
However, Madein emphasized that without proper verification of elected LGA leaders, implementing direct allocation remains challenging.
Meanwhile, the Central Bank of Nigeria (CBN) has started profiling local government chairmen and bank signatories as part of due diligence to ensure financial accountability.
However, the Association of Local Governments of Nigeria (ALGON) claims that it has not received any official communication regarding this process.
Supreme Court Ruling Yet to Take Effect
The Supreme Court had ruled that local government allocations must be paid directly to their accounts, preventing state governors from controlling LGA funds.
However, eight months after the judgment, financial autonomy has yet to be fully implemented.
The delay raises concerns over the continued interference of state governments in local council finances, despite the legal backing for autonomy.
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