The Federal Government has clarified why the Central Bank of Nigeria (CBN) has yet to commence direct fund allocations to Nigeria’s 774 Local Government Areas (LGAs), despite a Supreme Court order granting them fiscal autonomy. Speaking at a Nigerian Bar Association (NBA) discourse on Wednesday, Attorney-General of the Federation (AGF) Lateef bemi, SAN, and CBN’s Director of Legal, Kofo Salam-Alade, attributed the delay to incomplete modalities for implementation.
bemi, represented by Tijjani Gazali, SAN, revealed that an implementation committee—comprising representatives from the Federal Government, the Association of Local Governments of Nigeria (ALGON), and the Nigerian Governors Forum—was elished following the Supreme Court’s July 11, 2024, ruling. The committee is tasked with creating a practical framework for direct payments from the Federation Account to LGAs. “The committee is expected to complete its mandate any time from now,” bemi stated, emphasizing President Bola Tinubu’s commitment to liberating LGAs as a bona fide third tier of government—a resolve that prompted the FG’s legal action against the 36 state governors.
However, bemi expressed dismay at some governors’ continued defiance of the ruling, illegally dissolving elected LGA councils. Calling such actions “tantamount to treason,” he warned of severe consequences for offending states, despite governors’ immunity under Section 308 of the Constitution. “This flagrant disobence to the Supreme Court judgment will have unpleasant consequences for the state as a whole, should it persist,” he cautioned.
CBN’s Salam-Alade provided further insight, explaining that the apex bank lacks existing banking relationships with LGAs, necessitating a profiling process for account signatories to ensure transparency. “This is all about the standard procedure in the form of KYC (Know Your Customer),” he said, noting ongoing collaboration with the AGF’s office. He urged ALGON to mobilize LGAs to approach CBN branches for documentation, promising resolution within 48 hours. Contrarily, ALGON’s Sam Akala disputed the CBN’s claim of outreach, stating no official communication had been received, though he affirmed ALGON’s readiness to support grassroots development.
NBA President Mazi Afam Osigwe, SAN, underscored the discourse’s goal of ensuring functional LGAs, warning, “If we fail to get it right at the LG level, we may be setting a stage for a greater calamity.” As modalities take shape, the delay highlights logistical hurdles, while governors’ resistance tests the ruling’s enforcement, leaving LGA autonomy in limbo.
Why is there still a delay in releasing funds to LGAs despite the Supreme Court ruling? Frustrating lack of accountability.
Why are LGAs still facing delays in fund releases despite the Supreme Court ruling? Soing fishy going on? 🤔 #TransparencyNeeded
Why is the government dragging its feet on implementing the Supreme Court ruling for direct fund releases to LGAs? Its time for accountability!
Why is the FG dragging their feet on releasing funds to LGAs despite the Supreme Court ruling? Its time for accountability!
Why do LGAs still face delays in fund releases despite the Supreme Court ruling? Isnt it time for accountability and transparency?
Why are LGAs still waiting for funds despite the Supreme Court ruling? Its time for accountability and transparency in governance.
Why are LGAs still waiting for funds despite the Supreme Court ruling? Soing fishy going on? Curious minds want to know.