Kehinde Fajobi
The Federal Government has explained why local government areas (LGAs) have yet to receive direct allocations from the Federation Account despite the Supreme Court’s ruling granting them fiscal autonomy.
Attorney General of the Federation (AGF) Lateef Fagbemi and Central Bank of Nigeria (CBN) Director of Legal Services Kofo Salam-Alade said on Wednesday, February 19, that necessary structures for the direct disbursement of funds were still being put in place.
Speaking at a national discourse on local government autonomy organised by the Nigerian Bar Association (NBA), the AGF, represented by Tijjani Gazali, SAN, disclosed that an implementation committee was set up after the Supreme Court’s July 11, 2024, ruling.
“The committee is expected to complete its mandate any time from now and present its recommendation to Nigerians,” Fagbemi stated.
He added that President Bola Tinubu’s administration had taken state governors to court to secure local government autonomy.
Despite the ruling, the AGF criticised governors who continue to dissolve elected local councils, calling their actions “treason.”
“Let me state in unequivocal terms that this act is tantamount to treason and must be treated as such.
“While it is true that Section 308 of the Constitution grants the Governor immunity from prosecution, I wish to be clear that this flagrant disobedience to the Supreme Court judgment will have unpleasant consequences for the State as a whole, should it persist,” he warned.
Salam-Alade, providing further clarification, said the CBN does not have a direct banking relationship with LGAs, making it necessary to profile those who will serve as account signatories.
“This is all about the standard procedure in the form of KYC (Know Your Customer). Anyone who will be a signatory to the account must be profiled,” he explained.
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He urged local government officials to visit the CBN for documentation, assuring that their accounts would be activated within 48 hours.
However, ALGON representative Sam Akala countered the claim, saying he was unaware of any official communication from the CBN regarding the process.
NBA President Afam Osigwe, SAN, in his remarks, stressed that local governments must be allowed to function independently, warning that continued interference could lead to a “greater calamity.”