Local Government Autonomy in Limbo as 749 LGAs Fail to Submit Account Details

The Office of the Accountant General of the Federation (OAGF) has identified significant obstacles to implementing the Supreme Court’s ruling on local government autonomy, nearly eight months after the decision was made. The ruling, issued on July 11, 2024, mandated that local government allocations be paid directly to them rather than being controlled by state governors. However, several key administrative challenges have hindered its enforcement.

One of the major issues is the failure of 749 out of 774 local governments to submit their bank account details, which is a crucial requirement for receiving direct allocations. Without these details, the OAGF cannot process payments to the local governments as directed by the court. Additionally, determining which local governments have democratically elected leadership has posed another challenge, further complicating the implementation process.

Efforts to resolve these challenges are ongoing. The Federation Account Allocation Committee (FAAC) Technical Sub-Committee, led by Accountant-General of the Federation (AGF) Oluwatoyin Madein, recently convened to discuss possible solutions. The OAGF, in collaboration with the Attorney General’s Office, has also initiated discussions aimed at addressing the obstacles preventing full implementation of the ruling.

As of now, only Delta State’s 25 local governments have successfully submitted their bank account details, making it the only state fully compliant with the requirement. The delay in submissions from the vast majority of local governments has significantly slowed the transition to financial autonomy.

The Central Bank of Nigeria (CBN) has also become involved in the process, undertaking the profiling of local government chairmen and their respective bank signatories. This move is intended to ensure financial accountability and transparency in the management of local government funds. However, the Association of Local Governments of Nigeria (ALGON) has raised concerns, stating that they have not been contacted for verification of signatories, which could further delay the process.

The Supreme Court’s ruling was a landmark decision aimed at strengthening local government independence by preventing state governors from controlling their financial resources. The court directed the Accountant-General to pay allocations directly to local government accounts. Despite the ruling, local governments have yet to experience true financial autonomy, as administrative and logistical hurdles continue to obstruct implementation.

The delay highlights broader governance challenges in Nigeria, particularly the difficulty of enforcing judicial decisions that require significant bureaucratic coordination. The failure of most local governments to provide the necessary banking details, coupled with the uncertainty over the legitimacy of their leadership, underscores the complexities involved in restructuring financial administration at the grassroots level.

Stakeholders continue to explore solutions, but as the months pass, concerns grow over the effectiveness of the ruling if enforcement remains stalled. The situation remains fluid, with ongoing discussions between government agencies, local authorities, and financial institutions to overcome the remaining barriers to full local government autonomy.