The implementation of the Supreme Court’s landmark ruling granting local government autonomy in Nigeria has hit a major snag, as several state governors openly resist efforts to operationalize the judgment. A core point of contention is the directive for each of the 774 local government areas (LGAs) to open accounts with the Central Bank of Nigeria (CBN) for direct payment of their statutory allocations from the Federation Account.
Despite the Federal Government’s push for compliance and the setting up of an implementation panel, only Delta State LGAs have submitted account details, according to findings from a recent Federation Account Allocation Committee (FAAC) Technical Sub-Committee meeting.
Sources within the local government system, including several council chairmen who spoke to 9am News under condition of anonymity, revealed widespread intimidation, coercion, and sabotage from state governors. Many governors, particularly in the South-East and South-West, have reportedly threatened council bosses against opening the CBN accounts, fearing the move would cut off their access to local government funds.
According to one chairman from a South-East state, even a proposed compromise to remit 50% of the monthly LG allocations back to the governor was rejected. “Our governor has threatened us not to open accounts with the CBN,” he said.
Other chairmen attributed delays not only to political pressure but also to stringent conditions set by the CBN, such as the submission of two-month bank statements—a requirement many LGAs are unable to fulfill due to lack of prior financial independence.
A South-West LG chairman explained, “Most states can’t meet up because their governors are the ones managing and spending the local government funds. LGs are given only what the governors want them to have.”
Commercial Banks as an Alternative?
In a bid to retain control, some governors have reportedly lobbied President Bola Ahmed Tinubu to allow LGs to open commercial bank accounts instead of CBN accounts, thereby enabling state governments to monitor or intercept local council finances. The President’s stance on the matter remains unclear, adding to the uncertainty surrounding full implementation.
Meanwhile, several LG chairmen across states like Benue and Kwara confirmed that the Joint Allocation Account system is still in effect contrary to the Supreme Court’s directive leaving local government autonomy largely theoretical at this stage.
A chairman in Benue said: “What they are pushing for is for council chairmen to open their accounts in commercial banks where they can easily access and control the councils’ money.”
In contrast to the nationwide resistance, Nasarawa State appears to be showing signs of compliance. The state’s NULGE Chairman, Adamu Sharhabilu, confirmed that all local government accounts have been opened in preparation for direct federal allocations. He praised the state government and House of Assembly for their collaborative efforts.
However, he also admitted that no LGA in Nasarawa has received direct allocations yet, as disbursements are still funneled through the state-controlled Joint Accounts under the Ministry of Local Government and Chieftaincy Affairs.
Even within Nasarawa, skepticism remains. A local government chairman there blamed the Federal Government for not enforcing the Supreme Court ruling and failing to initiate the direct transfers. “We are ready, but the money is not being sent to our accounts,” the official said.
Further investigations show that many state NULGE chairmen are unaware of the exact status of implementation. In Kwara, for instance, the NULGE leader Seun Oyinlade disclosed that no local government has opened an account with the CBN so far.
This revelation highlights the growing confusion and disconnect between federal directives, state-level compliance, and grassroots readiness. It also underscores the challenge of enforcing judicial rulings in a system where state-level political will often trumps constitutional mandates.
Despite a Supreme Court judgment designed to enshrine local government autonomy in Nigeria, real implementation remains elusive due to state-level interference, resistance to financial transparency, and a lack of enforcement mechanisms by the Federal Government.
Until these hurdles are addressed especially the governors’ grip on LG finances the spirit of the ruling remains largely unfulfilled, leaving local governments underfunded, powerless, and dependent in practice.
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