Almost a year after the Supreme Court pronounced financial autonomy for local governments, the Federal Government is still “working out a system for direct allocation payments” to the third-tier level of government.
Attorney-General of the Federation and Minister of Justice Lateef Fagbemi, alongside CBN Director of Legal Kofo Salam-Alade, stated that proper structures are yet to be in place before the process can begin. They assured that efforts are underway to finalize the necessary framework and verify those who will manage the accounts.
Speaking at a forum organized by the Nigerian Bar Association on local government autonomy, Fagbemi explained that a committee was set up after the Supreme Court’s July 11, 2024, ruling.
This committee includes representatives from the Federal Government, the Association of Local Governments of Nigeria, and the Nigerian Governors Forum. Their task is to establish a working system for direct allocation payments.
Fagbemi emphasized that President Bola Tinubu’s administration took legal action against the 36 state governors to strengthen local government autonomy. However, he warned that some state governments continue to unlawfully dissolve elected local councils, stressing that such actions could have serious consequences.
CBN’s Legal Director Salam-Alade noted that the bank does not have a direct banking relationship with local governments. He urged local government representatives to complete their documentation, assuring that once all requirements are met, the process would move swiftly.
Meanwhile, Association of Local Governments of Nigeria representative Sam Akala claimed he was unaware of any official communication from the CBN regarding account openings. Despite this, he reaffirmed ALGON’s commitment to ensuring development reaches the grassroots.
Nigerian Bar Association President, Mazi Afam Osigwe highlighted the importance of democratic governance at the local level, warning that mismanagement of local governments could lead to larger national challenges.
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