Local government autonomy in Nigeria has faced significant setbacks, as several state governors block local council chairmen from opening accounts with the Central Bank of Nigeria (CBN) to receive direct allocations from the Federation Account.
The issue stems from governors’ concerns that this move would sever their long-standing control over local government funds. Despite the Supreme Court’s ruling nearly nine months ago, aimed at ensuring financial autonomy for all 774 local governments, the process has been delayed.
Local government chairmen, speaking anonymously for fear of reprisal, revealed that they have been under intense pressure from state governors to refrain from opening CBN accounts. “Our governor has threatened us not to open accounts with the CBN for the direct payment of our allocation,” said one chairperson from the South-East region. “We even offered to remit 50 percent of our allocation to him monthly, but he refused.”
The central government, in a bid to enforce the Supreme Court’s decision, had instructed the CBN to open accounts for local governments, but progress has been slow. Only a few states, including Delta, have successfully complied, while many others cite barriers such as stringent CBN conditions and governors’ resistance.
In contrast, the Nigeria Union of Local Government Employees (NULGE) in Nasarawa State affirmed that the state’s councils have opened their accounts, but direct allocations have yet to be disbursed. “No local government in Nasarawa has received direct allocations,” stated NULGE Chairman Adamu Sharhabilu.
The ongoing obstruction of local government autonomy has drawn sharp criticism from local officials, with one Benue-based chairman accusing state governors of working to frustrate the process. “Governors want us to open accounts with commercial banks where they can control the funds,” he stated.
As the battle over local government autonomy continues, many local government officials remain uncertain of the next steps in implementing the Supreme Court’s ruling.
Local government workers in states like Kwara, Zamfara, and Yobe are also facing delays, with no sign of immediate resolution.