
The implementation of local government autonomy in Nigeria faces significant challenges as state governors openly block their local government chairmen from opening accounts with the Central Bank of Nigeria (CBN) to directly receive allocations from the Federation Account.
Nearly nine months after the Supreme Court’s judgment granting full autonomy to 774 local governments, the process has encountered resistance and delays.
The CBN had been directed to set up accounts for each local government to facilitate the direct payment of their federal allocations, but many governors are strongly opposed to the move.
Some governors are reportedly pressuring council chairmen not to open these accounts, fearing the loss of access to local government funds that they have historically controlled.
A chairman in the South-East region revealed that despite offering to remit 50% of the allocations back to the governor, the request was denied, and the chairmen were threatened not to proceed with opening CBN accounts.
This opposition has led to confusion and frustration across various states, with some local government chairmen revealing that their governors have made it clear they will not allow them to open CBN accounts. This has left local governments in a limbo, unable to fully implement the Supreme Court’s ruling.
In contrast, some states, like Nasarawa, are fully cooperating with the Federal Government’s directive, having opened their accounts and eagerly awaiting direct allocations.
However, others continue to delay the process, citing issues like the stringent conditions set by the CBN, including the requirement for two months of financial statements.
The struggle for local government autonomy continues, with various stakeholders pushing for full compliance with the Supreme Court’s judgment, but the road ahead remains uncertain.
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