Governors Working Against Direct Allocations to LG Councils- Investigations
By Our Reporters
The Governors Forum has been fingered as discreetly fighting against the implementation of Supreme Court judgment on financial autonomy and direct allocations to 774 local government areas in the federation, THE BEAGLES NEWS can authouritatively confirm.
This subterranean moves by the Governors have made it extremely difficult for 36 States' Council Chairmen to submit account details to CBN for direct allocations to them, thereby stalking implementation of local government financial autonomy as ruled by the Apex court.
Recall that on July 11, 2024 the Supreme Court judgment on local government autonomy ordering direct allocation disbursement to the 774 LGAs.
THE BEAGLE NEWS checks across some states, especially in South South and South East geopolitical zones revealed the governors are hell bent of circumventing the implementation of LG financial autonomy by discreetly bullying their chairman not enter into any financial agreement with ministry of finance, office of a accountant General of the Federation and CBN with regard to council funds.
Some of the Governors are said to be subtly threatening the council chairmen with impeachment notice if they dare send their account details to CBN or fill any formal forms concerning management of local government funds.
It was learnt that some state Governors have gone ahead to sign an Irrevocable Standing Order (ISO) with the members of Association Local Government of Nigeria (ALGON) alleging that councils are indebted to state government to the tune of billions of Naira.
The Irrevocable Standing Order (ISO), a source told THE BEAGLES NEWS, will continuously tie the councils to the apron strings of Governors, who see themselves as alter ego of council adminstration.
Further checks revealed that some ALGON in Akwa Ibom, Cross River, Rivers, Abia, Ebonyi, Enugu, Imo, Anambra, Bayelsa and Edo are in quandary as to what next to do as they don't want to ruffle shoulder soft their benefactors, the Governors, who single handed brought them to office using fair and foul processes.
Some of these Governors are said to be deploying subtle threats of impeachment, suspension and denial of some 'goodies' if any chairman play any recalcitrant role in the present circumstance.
A chairman, in one of the South South states, who don't want his name in print, said: "We are really being policed like common criminals. In one of the meetings with the Chief of Staff to the Governor, we were scolded and rogue lashed for trying to send account details to CBN.
"Besides, we were simply reminded in that meeting that we didn't contest election and so any move to disobey Governor's instruction will be seen as civil mutiny."
Another chairman from South South zone, confided in THE BEAGLES NEWS that "immediately they were sworn-in, they signed an MoU to allow our Governor manage our funds. In short, whenever we go for national ALGON at Abuja, we take permission from our Governor and even consult him before we talk in the netting on what to say.
"We were even told not to mind what Federal Government is trying to do because they will not give second term when time for election is around the corner. So, that is why we are scuttling and faulting CBN's directives on account details.
Another chairman from South East, who spoke off record, said: "My brother, this LG autonomy would have been the best thing to happen to grassroots administration, but how possible because the Governors are in firm grip of the council Chairmen.
"In short, we signed an Irrevocable Standing Order (ISO) even before we were elected into office to forestall betrayal advert swearing in. And that is the fate that befalls Councils' Chairmen. We were warned to be careful of geNting press interviews with regard to local government financial autonomy."
"As far as the Governors are concerned, ISO signed will enable them still control council funds despite the judgement of Supreme Court with regards to direct statutory allocations to Councils."
According to the council chairman, in one of the sister states, some chairman tired to flex muscles and the young Governor almost suspended him.
But further checks in Delta state revealed that the Governor is disposed to local government financial autonomy as only the state chairmen have submitted their account details to CBN for direct transfer of statutory allocations.
The ALGON there seems to be having relative peace and in harmony with their Governor.
According to a source close to the Federation Account Allocation Committee Technical Sub-Committee meeting held recently, Delta State local government areas have submitted their account details to the Office of the Accountant-General of the Federation.
The source revealed that the submission of account details by the Delta State LGAs was confirmed during the FAAC Technical Sub-Committee meeting held on January 17, 2025, at the Federal Ministry of Finance Headquarters, Abuja.
The document showed that while the OAGF had started receiving account details from various sources, only Delta LGAs had fully submitted their details. While some LGAs reportedly provided account details directly, others did so through their state governments.
_OAGF, AG Continue Move To Enforce LG Direct Allocations_
The Account-General of the Federation, Oluwatoyin Madein and the Attorney-General and Minister of Justice Lateef Fagbemi, SAN, have commenced moves on the implementation of direct allocations to councils.
The two senior officials have been holding consultations on the modalities for submitting LGAs’ bank accounts for direct payment of council allocation but are reportedly facing challenges identifying LGAs with democratically elected officials.
According to the Accountant-General, “The Office had started receiving account details from various sources; some directly while others were going through the states.
“So far, only local governments in Delta State have provided account details. However, consultation with the Attorney-General of the Federation on the modalities of the submission of the accounts was still ongoing.”
The meeting, chaired by the Accountant General highlighted that the process had encountered challenges, particularly in identifying LGAs with properly elected leadership. raising some concerns about the legal procedures for submitting these accounts, particularly in relation to constitutional provisions.
The Accountant General, Madein, admitted that the foundational stage is still unclear and are committed to direct allocations to states that have elected council chairmen.
She explained that several complexities needed to be resolved before the system could function effectively, explaining that the Office of the Accountant General of the Federation would seek clarification from the Attorney General of the Federation (AGF) to assess the current status and determine the next steps.
Recall that the Central Bank of Nigeria (CBN) had commenced profiling the chairmen and signatories to the bank accounts of the 774 local government areas in the country, as part of processes to commence local government autonomy.
The Director of Legal Services at the CBN, Kofo Salam-Alada, explained that this was necessary to ensure financial accountability, disclosing that the apex bank had no direct banking relationship with the LGAs.
Salam-Alada stated, “this is all about standard procedure in the form of KYC (Know Your Customer). Anyone who will be a signatory to the account must be profiled. The process is ongoing, and we are collaborating with the AGF’s office. We have also written to the LGAs.”
He urged the Association of Local Government of Nigeria to encourage its members to engage with the CBN at the local level, assuring that once proper documentation is completed, the accounts will be operational within 48 hours.
“We are using this opportunity to call on the 774 local government chairmen to come forward for their documentation. No account can be operationalised without the prerequisite Customer Due Diligence,” he added.
LGs tackle CBN
Reacting to the CBN legal director’s assertion that the apex bank had commenced profiling the 774 council chairmen and the signatories to the LGAs’ bank accounts to ensure financial accountability, the Association of Local Governments of Nigeria across the states said it had received no communication concerning the opening of bank accounts.
