A fresh controversy has erupted in Nigeria’s political landscape as state governors have launched a last-ditch effort to block the direct payment of federal allocations to local government councils. The move comes amid a long-standing dispute over financial autonomy for local governments.
The dispute over financial autonomy for local governments dates back to 2019 when the Nigerian Financial Intelligence Unit (NFIU) issued guidelines aimed at granting financial autonomy to local governments. The guidelines prohibited state governments from tampering with local government funds and mandated that allocations be paid directly to the councils.
In a landmark judgment delivered on July 11, 2024, the Supreme Court affirmed the financial autonomy of local governments, ruling that federal allocations must be paid directly to the councils. The court declared that the practice of state governments receiving and disbursing local government funds was unconstitutional.
Despite the Supreme Court judgment, state governors have continued to resist the implementation of financial autonomy for local governments. In a recent meeting with President Bola Tinubu, the governors reportedly lobbied for a delay in the implementation of direct payment to local governments, citing concerns over the management of local government funds.
The Central Bank of Nigeria (CBN) has been mandated to facilitate the direct payment of federal allocations to local governments. However, the process has been slow, with the CBN citing the need to verify the accounts of local government councils.
The Association of Local Governments of Nigeria (ALGON) has expressed concerns over the delay in implementing financial autonomy for local governments. ALGON’s Secretary-General, Mohammed Abubakar, stated that the association was worried about the governors’ attempts to delay the implementation of direct payment, which he described as a ploy to maintain control over local government funds.
The dispute over financial autonomy for local governments has significant implications for the development of local communities. With state governments controlling local government funds, many councils have been unable to implement development projects, leading to a decline in the quality of life for residents.
The controversy over financial autonomy for local governments is a complex issue that requires urgent attention. While state governors have legitimate concerns over the management of local government funds, the Supreme Court judgment must be respected. The federal government must ensure that the direct payment of federal allocations to local governments is implemented without delay, to ensure the development of local communities.