The Accountant-General of the Federation, Oluwatoyin Madein, and the Attorney-General and Minister of Justice, Lateef Fagbemi, SAN, have initiated discussions to enforce the Supreme Court’s July 11, 2024, judgment on local government autonomy. However, direct allocation disbursement to the 774 local government areas (LGAs) continues to face delays.
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As part of the implementation process, both officials are consulting on modalities for submitting LGAs’ bank account details for direct allocation disbursement. However, they face challenges in identifying LGAs with democratically elected officials, a key prerequisite for financial autonomy.
According to minutes from the Federation Account Allocation Committee (FAAC) Technical Sub-Committee meeting, obtained by The PUNCH on Sunday, only LGAs in Delta State have submitted their account details to the Office of the Accountant-General of the Federation (OAGF).
During the FAAC Technical Sub-Committee meeting on January 17, 2025, at the Federal Ministry of Finance Headquarters in Abuja, the OAGF confirmed that while account details were being received from various sources, full compliance had only been recorded in Delta State. Some LGAs submitted details directly, while others channeled them through their state governments.
The Accountant-General noted that consultations with the Attorney-General on submission modalities were ongoing. The meeting also raised concerns about the legal and procedural framework for account submission, particularly in light of constitutional provisions.
A key obstacle identified was determining which LGAs had constitutionally elected chairmen, a critical requirement for receiving direct allocations. Madein emphasized that several complexities must be addressed before the system can function effectively. The OAGF is expected to seek further clarification from the Attorney-General to assess the current status and determine the next steps.
A representative of the Accountant-General of Niger State suggested that once the AGF finalizes the required modalities, a formal letter should be sent to the OAGF outlining the necessary steps for LGAs to submit their account details. The official stressed the need for clear guidelines to ensure consistency in implementing financial autonomy across states.
The FAAC Technical Sub-Committee minutes indicated that the Chairman directed the Director of the Federation Account to take note of concerns related to communication with the Attorney-General’s office. The Chairman further stated that a structured system was needed to ensure local governments with properly elected leadership receive their allocations without delays.
With Delta State LGAs leading in compliance, other states are expected to follow once the AGF provides clear directives. In Ondo State, a newly elected local government chairman, speaking anonymously, disclosed that LG bank account details would be submitted after the Joint Allocation Committee (JAC) meeting on Monday.
Meanwhile, the Central Bank of Nigeria (CBN) has commenced profiling the chairmen and signatories to the bank accounts of the 774 LGAs as part of the financial autonomy enforcement process. The CBN’s Director of Legal Services, Kofo Salam-Alada, explained that profiling is necessary to ensure financial accountability.
However, the Association of Local Governments of Nigeria (ALGON) has countered the CBN’s claims, stating that it has not received any communication regarding the opening of bank accounts. ALGON representatives in states such as Abia, Oyo, Benue, Kano, and Imo confirmed that no local government chairman had been invited for signatory verification.
The ALGON Chairman in Abia State and Chairman of Isuikwuato LGA, Chinesu Ekeke, stated that he was unaware of any communication from the CBN regarding account verification. Similarly, council chairmen in Ogun, Ekiti, and Plateau States confirmed that no instructions had been received to submit account details.
A senior official in an Osun State local government disclosed that while account details had been submitted to the appropriate authorities, February salaries had yet to be disbursed, highlighting further delays in the process.
The Supreme Court’s July 11, 2024, ruling affirmed the financial autonomy of the 774 LGAs, directing the Accountant-General to pay allocations directly to their accounts while prohibiting governors from interfering with local government funds. However, eight months after the ruling, full implementation remains pending.
The National Union of Local Government Employees (NULGE) has raised concerns, warning the CBN against aiding state governors in obstructing financial autonomy for local governments. NULGE National President, Hakeem Ambali, refuted claims that LGAs lacked necessary audited financial records, asserting that local governments had at least three years of audited accounts ready for submission.
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