Fresh Setback for LGs Autonomy as Governors Stall Implementation

• Local governments anticipate October allocation as NULGE, civil society call for swift enforcement.

State governors have launched renewed efforts to delay the enforcement of the Supreme Court ruling that grants full financial autonomy to local governments. This comes as a 10-member inter-ministerial committee, tasked with implementing the court’s decision, prepares to submit its report next week.

The panel, led by the Secretary to the Government of the Federation, George Akume, is expected to present its findings on or before October 13, according to sources within the Presidency.

Under former President Muhammadu Buhari, the Nigerian Financial Intelligence Unit (NFIU) introduced regulations in June 2019, aimed at curbing governors’ control over local government funds. These regulations mandated direct disbursement of funds to local governments and restricted cash withdrawals to ₦500,000 per day. However, state governors, through the Nigerian Governors’ Forum, opposed the regulations, leading to a reversal.

In May 2024, the Federal Government, represented by the Attorney-General of the Federation (AGF), Lateef Fagbemi, filed a lawsuit challenging the governors’ authority over federal allocations meant for local government councils. The suit sought to prevent state governors from dissolving democratically elected councils and imposing caretaker committees, as well as to enforce the constitutional mandate for elected local government systems.

On July 11, 2024, the Supreme Court delivered a landmark ruling, affirming the financial autonomy of Nigeria’s 774 local governments. The court declared it illegal and unconstitutional for state governors to control or withhold funds designated for the councils. The court ordered the Accountant-General of the Federation to ensure direct payments to local government accounts, condemning the non-remittance of funds by state governments as unconstitutional.

Following this ruling, the Federal Government formed a 10-member committee on August 20 to implement the judgment. The committee includes key officials such as Finance Minister Wale Edun, AGF Lateef Fagbemi, Budget Minister Abubakar Bagudu, and Central Bank Governor Olayemi Cardoso, alongside representatives of the state governors and local governments. Its mandate is to ensure local governments can operate independently of state interference.

President Bola Tinubu, in his Independence Day address, reaffirmed his administration’s commitment to upholding local government autonomy, stating that the financial freedom of these councils was essential to re-engineering the nation’s political economy.

Despite the Supreme Court’s ruling, governors are reportedly lobbying to delay its enforcement. Presidency sources revealed that while the President is determined to implement the court’s decision, pressure from the governors continues to mount. Nonetheless, ministries of finance and justice are finalizing details to commence the process.

Hakeem Ambali, National President of the National Union of Local Government Employees (NULGE), confirmed that the inter-ministerial committee would submit its report by October 11, emphasizing that the President’s Independence Day speech bolstered confidence in the enforcement of the judgment.

Civil society groups, including the Centre for Accountability and Open Leadership (CACOL) and the United Global Resolve for Peace (UGRP), have criticized the governors’ attempts to hinder the process. Debo Adeniran, Chairman of CACOL, called the governors’ actions “self-serving” and urged the Federal Government to stand firm against any delays. Olaseni Shalom, Executive Director of UGRP, advocated for a legislative push to clarify the autonomy of local governments and prevent further ambiguities.

The Coalition of United Political Parties (CUPP) has also urged the Federal Government to implement the judgment without delay, arguing that any further stalling would undermine the rule of law.

Governor Seyi Makinde of Oyo State has denied claims that he opposes local government autonomy, asserting that his administration supports elected officials performing their constitutional duties. Speaking at the unveiling of a new Local Government House in Ibadan, Makinde stated that his administration is committed to ensuring that local councils fulfill their role in delivering the dividends of democracy to the grassroots.

Meanwhile, local government officials in states like Gombe and Kwara are preparing for the direct disbursement of federal allocations in October. Dr. Ahmed Wali, Chairman of Kwami Local Government Area in Gombe State, confirmed that plans are underway to open local government accounts with the Central Bank of Nigeria, while Mallam Adam Rufai, Chairman of Patigi Local Government Area in Kwara State, noted that newly elected councils have not yet received official notifications about the direct allocations.

Despite some uncertainty, local government officials across Nigeria are preparing for a new era of financial independence, as the implementation of the Supreme Court ruling looms.

This article is sourced from The Punch newspaper, with minor edits and adaptations by The Spectacles for clarity and readability.