By Andrew Haruna
State governors have intensified efforts to block the direct disbursement of federal allocations to local government councils, seeking to delay the implementation of the Supreme Court ruling on local government autonomy.
During a closed-door meeting with President Bola Tinubu at the State House, Abuja, last Tuesday, some governors opposed routing the funds through the Central Bank of Nigeria (CBN), arguing that local governments had incurred multi-billion-dollar debts that needed to be addressed.
Governors Push for Commercial Bank Accounts
A Presidency official disclosed that the governors took advantage of an Iftar dinner with the President to renew negotiations on the issue, which has caused delays in local government allocations.
“The Federal Government wants the allocations paid into the CBN, with each local government opening an account there. But the governors rejected this, arguing that it would still place control of the funds under the FG,” a source told The PUNCH.
Instead, the governors proposed that the allocations be sent to commercial bank accounts, which they claim would ensure state-level control.
“One of the governors argued that with CBN handling the funds, approvals from the Accountant-General would be required, effectively keeping the money under federal control. They want a different arrangement,” another source revealed.
Supreme Court Ruling on LG Autonomy
On July 11, 2024, the Supreme Court ruled in favour of fiscal autonomy for local governments, mandating that federal allocations be paid directly to LGA accounts rather than going through state governments.
The ruling was a response to a suit filed by the Federal Government seeking to enforce constitutional provisions that grant local governments financial independence.
Ongoing Standoff
Despite the Supreme Court’s decision, governors are reportedly working behind the scenes to stall implementation, insisting that LGAs remain under their financial oversight.
While the outcome of their meeting with Tinubu remains unclear, sources indicate that negotiations are ongoing, with local government allocations currently being withheld due to the dispute.