Nigeria struggles to implement LG autonomy as AGF identifies major setbacks

The Office of the Accountant General of the Federation (OAGF) has pinpointed two major obstacles delaying the full implementation of the July 11, 2024 Supreme Court ruling on local government autonomy.

According to the government agency, the failure of Local Government Areas (LGAs) to submit account details and the challenge of identifying democratically elected chairmen remain significant setbacks to direct financial allocations.

The Federation Account Allocation Committee (FAAC) Technical Sub-Committee, chaired by AGF Oluwatoyin Madein, acknowledged these concerns in its latest meeting, according to minutes obtained over the weekend.

Despite the Supreme Court’s landmark ruling mandating direct payments to the 774 local governments, only Delta State has submitted account details for its 25 LGAs, signaling a nationwide compliance issue.

The minutes of the meeting reads: “So far, only local governments in Delta State have provided account details.

“However, consultation with the Attorney-General of the Federation on the modalities of the submission of the accounts was still ongoing,” it said.
Addressing the challenge, Madein said a system was set to be implemented, but the initial challenge was in determining which local government councils had constitutionally elected chairmen.

“Additionally, for those with properly elected leadership, the question arose as to what mechanisms would be deployed to ensure they receive direct allocations.

“This was because numerous complexities needed to be addressed,” she said.

The OAGF and the Office of the Attorney General of the Federation have begun discussions to resolve these challenges.

Meanwhile, the Central Bank of Nigeria (CBN) has commenced profiling local government chairmen and signatories to their bank accounts to ensure financial accountability. However, ALGON Chairman in Abia State, Chinesu Ekeke, stated that LG chairmen had yet to receive invitations for signatory verification.

This delay has led to growing concerns, with the National Union of Local Government Employees (NULGE) warning against any state-level interference that could undermine financial autonomy.

Despite the Supreme Court’s directive eight months ago, local governments are yet to receive direct allocations, prolonging the struggle for true financial independence.