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•LGs plan to get October allocation from Federation Account as NULGE, others urge enforcement
Ahead of the submission of the report of the 10-member inter-ministerial committee on the implementation of the Supreme Court ruling on Local Government Areas autonomy next week, state governors have begun fresh lobbying against the enforcement of the verdict.
The panel, headed by the Secretary to the Government of the Federation, George Akume, has concluded its assignment and is expected to submit its report on or before October 13, according to PUNCH findings.
Under former President Muhammadu Buhari, the Nigerian Financial Intelligence Unit issued a regulation, effective from June 1, 2019, banning transactions on State and Local Governments Joint Accounts. Funds were sent directly to the accounts of the local governments. It also limited cash withdrawals from local governments accounts to a maximum amount of N500,000 per day with penalties for banks that failed to comply.
However, state governors, under the aegis of the Nigerian Governors’ Forum, kicked against this regulation and the NFIU eventually capitulated.
In May, the Federal Government, represented by the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, filed a lawsuit to challenge the governors’ authority to receive and withhold federal allocations meant for Local Government Areas.
The suit sought to prevent state governors from unilaterally dissolving democratically elected local government councils and establishing caretaker committees. The AGF argued that the constitution mandated a democratically elected local government system and did not allow alternative governance structures.
The Supreme Court, on July 11, 2024, gave a landmark judgment affirming the financial autonomy of the 774 LGs in the country and ruled that governors could no longer control funds meant for the councils.
The seven-member Supreme Court panel, led by Justice Garba Lawal, ruled that it was illegal and unconstitutional for governors to manage and withhold LG funds.
The apex court also directed the Accountant-General of the Federation to pay LG allocations directly to their accounts, as it declared the non-remittance of funds by the 36 states unconstitutional.
Also, on August 20, the Federal Government instituted a 10-member inter-ministerial committee to implement the Supreme Court’s ruling on local government autonomy.
The committee members include the Minister of Finance & Coordinating Minister of the Economy, Wale Edun; Attorney General of the Federation & Minister of Justice, Lateef Fagbemi SAN; Minister of Budget & Economic Planning, Abubakar Bagudu; Accountant-General of the Federation; Oluwatoyin Madein and the Governor of the Central Bank of Nigeria, Olayemi Cardoso.
Others are the Permanent Secretary, Federal Ministry of Finance, Mrs Lydia Jafiya, the Chairman, Revenue Mobilization Allocation & Fiscal Commission, Mohammed Shehu, and representatives of state governors and the local governments.
The committee’s primary goal is to ensure that local governments are granted full autonomy, allowing them to function effectively without interference from state governments.
In his broadcast marking Nigeria’s 64th Independence anniversary on Tuesday, President Tinubu pledged that his administration would uphold the financial autonomy of local governments, as affirmed by the Supreme Court.
The President said, “As part of our efforts to re-engineer our political economy, we are resolute in our determination to implement the Supreme Court judgment on the financial autonomy of local governments.”
About three officials, including a source in the Presidency, who spoke on condition of anonymity as they were not authorised to speak on the issue, told The PUNCH that governors were pressuring top officials to soft-pedal on the implementation of the apex court judgment.
The Presidency official, however, stressed that the President was committed to implementing the Supreme Court ruling.
He stated, “The process is on and governors are already lobbying to stall the implementation of the apex court ruling as the panel prepares to submit its report next week.
“The implementation will start any moment now. The ministries of finance and justice are working to finalise details of implementation.”
Speaking to The PUNCH on Wednesday, the National President, National Union of Local Government Employees, Hakeem Ambali, confirmed that the inter-ministerial committee would submit its report by October 11.
“A technical committee was set up under the chairmanship of the Secretary to the Government of the Federation and it is expected that implementation kicks off on or before October 11 as mandated by the Supreme Court.
“The President’s speech has also given us more reassurance that this is already a done deal. NULGE has also submitted its report to the committee,’’ he stated.
Reacting to the governors’ plot to hinder the enforcement of the Supreme Court verdict, civil society groups, including the Centre for Accountability and Open Leadership and the United Global Resolve for Peace, called on the Federal Government to accelerate the implementation of the autonomy.
Chairman, CACOL, Debo Adeniran, faulted the governors’ “self-serving nature” and their “stranglehold on the local governments.”
He stated, “We know that they didn’t like what the President did by asking the Supreme Court to adjudicate on the matter. They are actually mounting pressure, not just lobbying, mounting pressure on all forces to ensure that the implementation of that order doesn’t come.
“That lobby is unnecessary, it’s unwarranted and the President should not allow it to work. If the President insists, then they will not succeed because the rule of law must prevail; the Supreme Court has ruled, it is just for them to implement, so nothing must stop it, otherwise, we would have put the rule of law in jeopardy and that’s not good for us.”
The Executive Director, UGRP, Olaseni Shalom, called on the President to sponsor a bill in the National Assembly to enforce the autonomy.
Shalom urged the governors to support local governments in pursuing fiscal autonomy.
“The position of the law is clear regarding the implementation of the LG autonomy. But we should also note that this law is not new. It is an existing law already and it was taken to the Supreme Court for interpretation,” Shalom stated.
“Immediately the Supreme Court interpreted it, what I expected was for the Presidency to sponsor a bill that will rid it of all ambiguity and make it as clear as possible. Instead, they set up a 10-man committee.
“The LG autonomy should also be a period for restructuring advocacy that has been on for a while now so that state governments can also control their resources, you know, have fiscal autonomy. And this is why there is a tussle between the state governments and the Presidency as regards the enforcement of this law. It is very important for both parties to sit down and negotiate.”
During a recent gathering, the National Secretary, Coalition of United Political Parties, Peter Ahmeh, called on the Federal Government to take immediate action on the matter.
Ahmeh emphasised that the Supreme Court’s ruling should have been put into effect without any delay.
He stated, “The judgment that the courts have passed affects the financial autonomy of local government. It does not affect the administrative autonomy of local government.
“The financial autonomy of local government is captured in section 162 of the Constitution, while the administrative autonomy of local government pertains to the administration of elections, such as those conducted by the State Independent Electoral Commissions for local governments in Nigeria.
“In each of the states, there is one electoral commission, meaning we have 36 independent electoral commissions at the state level, plus one at the national level. Thus, we have 37 independent electoral commissions in total—one national and 36 state.
“For us, I think it is perplexing that the Federal Government feels the need to enter into an agreement with state governments before starting the implementation of a valid court judgment from a competent authority, such as the Supreme Court.”
The CUPP scribe called on the Federal Government to actively oppose efforts by the governors to delay the enforcement of the judgment on the autonomy.
He added, “The Federal Government does not need to establish a committee and announce that they will begin the process soon. There is simply no need for that.
“It is very important and urgent for the financial autonomy to be enacted so that local people can hold their local government accountable for the finances that accrue to each local government’s account. The criminality and embezzlement that occur at the local government level are a direct result of a lack of independence. These are the issues we are facing in local government.
“The implementation should occur immediately and without hesitation. Any attempts by the governors to stall this process should be resisted.”
Meanwhile, Governor Seyi Makinde of Oyo State has dismissed insinuations that he is against local government autonomy.
Reacting to reports that he was not in support of the LG autonomy, Makinde said he had no issues with elected officials performing their constitutional duties but would continue to speak against a lacuna created where none existed.
He spoke during the official unveiling of the newly-built Local Government House and Staff Training School inside the Oyo State Government Secretariat, Agodi, Ibadan, on Wednesday.
He said, “This building is a start of the renovation of the buildings within the secretariat and turning our secretariat into where productivity will reign supreme.
“What I will refer to as an irony is the fact that it is the same local government that people are going around town saying Seyi Makinde is trying to destroy. Is it not ironic that this building we are commissioning is the first modern building for the LG family to stay in?
”Is this how to destroy something? Well, if that is the way to destroy something, we will continue to do this kind of things so that they will not have anything to say again around town.
“Let me say this, in a country where there is a trust deficit between the leaders and the led, it is no wonder that some people will always take advantage of situations to fan the flames of disunity or choose to push unintended narratives and perceptions.
“As I said in my last state broadcast, we must always remember who our real enemies are so that we do not turn against our friends.”
Promising to ensure that the councils performed their constitutional roles, the governor added, “Here in Oyo State under my watch, we will continue to make decisions that will bring the full benefit of democracy to the good people of Oyo State and we are aware of the role that the local government authorities have to play in ensuring that democracy and its dividends reach people at the grassroots.
“In design, this is supposed to be the function of the Local Government Areas but in practice, there have been several factors that have militated against Local Government Areas achieving this goal.”
Meanwhile, Chairman of Kwami Local Government Area of Gombe State, Dr Ahmed Wali, says plans are in motion for LGs to receive FG allocation directly.
He said, “We are hoping to receive the allocation in October as plans are in the pipeline to open accounts for local governments with CBN. They (FG) will pay the money, they are in the process. We were made to understand that it will be the next arrangement.”
Also, the new Chairman of Patigi Local Government Area of Kwara State, Mallam Adam Rufai, said the council had not been notified about payment of the allocation.
“We don’t know yet because we were just elected into the council. We have no information on whether the allocation is going to be paid directly to the council by the Federal Government. No one has given us such information,” he said.
A senior local government official, who spoke on condition of anonymity, said after the Supreme Court landmark judgment, all the LGs in the state were made to open new accounts with a commercial bank, where their allocation would be paid.
“But I am not sure we are receiving allocation through it yet. We are receiving our salaries for September already but I doubt it if we are getting direct allocation from the Federal Government yet,” the official said.
