Direct payments of statutory allocations to Local Government Areas will begin by November 2024, provided no last-minute resistance arises from state governors.
Hakeem Ambali, National President of the National Union of Local Government Employees, revealed this in an exclusive interview on Sunday. The Economic and Financial Crimes Commission also pledged to monitor and track the expenditures of the 774 LG chairmen receiving monthly allocations from the Federal Government.
This development represents a pivotal step towards LG autonomy, mandated by the Supreme Court and ahead of the October 31st deadline for states to conduct LG elections. In May, the Federal Government, through Attorney-General and Minister of Justice Lateef Fagbemi, filed a lawsuit challenging governors’ authority to receive and withhold federal allocations for LGAs.
The suit aimed to restrict governors from dissolving democratically elected LG councils and replacing them with caretaker committees. The AGF argued that the constitution mandates a democratically elected LG system and prohibits alternative governance structures. On July 11, 2024, the Supreme Court issued a landmark judgment affirming financial autonomy for the 774 LGAs and ruled against governors controlling council funds.
Led by Justice Garba Lawal, the seven-member Supreme Court panel declared it illegal and unconstitutional for governors to withhold LG funds. The apex court instructed the Accountant-General to remit allocations directly to LG accounts, condemning the states’ non-remittance of funds.
However, the Federal Government delayed implementation by three months to address concerns about salary payments and operational viability. On August 20, it established a 10-member inter-ministerial committee to enforce the Supreme Court’s ruling. The committee, including Finance Minister Wale Edun, Attorney General Lateef Fagbemi, and CBN Governor Olayemi Cardoso, is tasked with ensuring LG autonomy and reducing state interference.
The panel, headed by the Secretary to the Government of the Federation, George Akume, completed and submitted its report on October 13.
As of last Tuesday, Waffi TV reported that 164 LGAs across eight states had yet to hold elections and risk having their allocations withheld by the Federal Government. However, NULGE Chairman Ambali confirmed Sunday that all issues have been resolved, with direct payments set to start during the November Federal Accounts Allocation Committee distribution.
Ambali said, “On the issue of the allocation, we want to be very careful and ensure that everything is well put into place so that there won’t be any form of issues.
“We are aware that governors are also trying to have their way. See what is going on in Abia state for instance.
“So, we don’t want any loophole at all. We believe that by November, the whole thing will come into full effect.”
He further stated that the Ministry of Budget and National Planning has organized a stakeholder meeting to facilitate the smooth implementation of the policy.
“Last week, we, the stakeholders, had technical sessions with the minister of budget and national planning from Monday to Wednesday. o we are very sure that by November, the whole thing will be implemented,” he noted.
The National Union of Local Government Employees (NULGE) and other unions recently petitioned the presidency to withhold allocations from states that have not implemented local government autonomy. Meanwhile, Ola Olukoyede, Chairman of the Economic and Financial Crimes Commission (EFCC), announced that the agency would oversee the budget performance of all local governments nationwide.
In an interview published in the commission’s magazine, obtained by our correspondent on Sunday, Olukoyede expressed concern over state governments’ excessive control over local government resources.
He further revealed that the EFCC has expanded its presence across the country, pledging that any local government official found misusing funds will be apprehended and prosecuted.
Olukoyede said, “The wisdom of the Attorney General and Minister of Justice, Prince Lateef Fagbemi (SAN), in initiating the action cannot be faulted.
“Local government operations have largely been crippled in the country due to the overbearing influence of state governments.
“The charges recently filed by the commission against the former governor of Taraba State, Darius Ishaku, have to do with an alleged theft of billions of local government funds.
“So, local governments having direct access to their funds may improve developmental activities at the third tier of government and reduce rural poverty.
“We are fully prepared to ensure accountability in the use of local government funds. One of the reasons that informed the decision to establish additional zonal directorates by the commission is the need to improve the commission’s presence and coverage of the country.
“We’ll work closely with stakeholders in tracking the budget performance of the councils, to ensure that funds appropriated are used for specified purposes and those who violate the law will be brought to justice.”
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