The push for local government autonomy remains stalled as 749 out of 774 local government areas (LGAs) in Nigeria have yet to submit their bank account details, a crucial requirement for direct allocation of funds, as mandated by the Supreme Court ruling of July 11, 2024.
The Office of the Accountant General of the Federation (OAGF) has identified this as a significant hurdle in implementing the court’s decision, which stripped state governors of control over local government funds.
The Federation Account Allocation Committee (FAAC) Technical Sub-Committee, during a recent meeting chaired by the Accountant-General of the Federation, Oluwatoyin Madein, extensively discussed the matter.
“The delay in receiving account details from most local governments is a major obstacle to ensuring compliance with the Supreme Court ruling,” an official familiar with the discussions stated.
The OAGF, in collaboration with the Attorney General’s Office, has initiated talks to address these setbacks. So far, only the 25 local government councils in Delta State have submitted their bank account details, leaving 749 others yet to comply.
Additionally, the Central Bank of Nigeria (CBN) has commenced the profiling of local government chairmen and bank signatories to ensure financial accountability. However, the Association of Local Governments of Nigeria (ALGON) has raised concerns, stating that they have not been formally contacted for signatory verification.
“We have not been engaged in any verification process regarding signatories to these accounts,” an ALGON representative revealed, adding that proper consultation would help resolve the delays.
The Supreme Court’s verdict in July 2024 directed the Accountant-General to make direct allocations to LGAs, effectively ending the practice of state governors managing local government funds.
Despite this ruling, the implementation remains slow due to administrative bottlenecks, including the failure of most LGAs to provide the necessary financial details.
Eight months after the judgment, local government autonomy is yet to take full effect, raising concerns about governance at the grassroots level.
The OAGF and relevant authorities continue to push for compliance to ensure that local governments receive their allocations as intended.
