State governors are making efforts to resist the planned distribution of federal funds to local government councils in a move to postpone the enforcement of the Supreme Court ruling on LGA autonomy. During a meeting with President Bola Tinubu, some governors opposed the payment of LG allocation through the Central Bank of Nigeria, citing concerns about addressing substantial debts incurred by the councils.
Officials shared that the governors used an Iftar dinner as an opportunity to discuss directly allocating funds to the councils, which has been delayed. The disagreement arises from the Federal Government’s preference for the funds to be channeled through the CBN, while the governors advocate for the allocation to be sent to commercial bank accounts.
Following the Supreme Court’s decision affirming the autonomy of local governments and mandating direct federal allocations to their accounts, tensions have escalated between state and local governments. The CBN is facing challenges in implementing the judgment due to resistance from governors and logistical issues.
The delay in implementing financial autonomy for LGAs is also attributed to unclear guidelines from the CBN regarding account submissions and signatory verification. Stakeholders, including the AGF, are urged to engage in consultations to ensure a smooth transition towards financial autonomy for local governments.