Governors And Local Government Leaders Strike Deals To Bypass Council Funding Orders

Governors And Local Government Leaders Strike Deals To Bypass Council Funding OrdersSome governors in the country appear increasingly desperate to access monthly allocations intended for local governments, according to sources including a council chairman and a party candidate. Investigations by Sunday PUNCH have revealed that certain governors are employing covert strategies to continue siphoning council funds through secret oath-taking agreements with elected chairmen.

On July 11, the Supreme Court granted financial autonomy to the 774 local governments and mandated the Accountant-General of the Federation to deposit allocations directly into their accounts. Subsequently, on August 20, the Federal Government established a 10-member inter-ministerial committee to facilitate the implementation of the court’s ruling.

Sunday PUNCH has learned that the committee, led by the Secretary to the Government of the Federation, George Akume, has completed its work and is expected to submit its report soon, with a deadline of Monday, October 14.

In the wake of the Supreme Court ruling, state governors requested a three-month moratorium before direct allocations to local governments began, to allow for the conduct of elections. States that have held local government elections include Ebonyi, Bauchi, Kebbi, Oyo, Kwara, Imo, Enugu, Sokoto, Akwa Ibom, Anambra, Benue, and Rivers.

Earlier this month, the President of the National Union of Local Government Employees, Ambali Olatunji, announced that direct payments of allocations to local government accounts would commence by the end of October.

A council chairman from one of the South-West states, who spoke to Sunday PUNCH on the condition of anonymity due to the sensitive nature of the issue, revealed that he felt compelled to pledge allegiance to his state governor, granting him continuous access to the funds. The chairman disclosed, “After the Supreme Court judgment, we met with the governor and reaffirmed our loyalty. We committed to following his directives regarding our local government funds. This wasn’t entirely voluntary; external pressures influenced our decision. I might not even hold this position if I hadn’t made that pledge prior to our election.”

Another senior media officer from the same state indicated that the agreement between the chairmen and the governor included a stipulation for ongoing remittances of their funds to a designated state account. “I am aware of their arrangement. The chairmen were instructed to pledge their allegiance, ensuring they would remit funds to the state when direct allocations begin. Their current arrangement allows for N5 million as a security vote after paying teachers and other workers, with the vice chairman and principal officers receiving their operational costs, and N10 million allocated for local government operations. The remainder would then be sent to the state,” he explained.

Additionally, a local government chairmanship candidate from a southern state stated that he and his colleagues took an oath to adhere to their governor’s directives regarding local government funds before being cleared as party candidates. “Our pledge was to follow the governor’s directives on local government funds; I don’t think that’s unreasonable,” he remarked.

At least five other chairmen contacted in the North-East declined to comment, stating they had nothing to say on the matter. A political analyst in Sokoto State, Abdul AbdulKareem, noted that Nigerians should not expect significant actions from the chairmen. “Why would you expect them to admit such things? None can act without the governor’s or party leader’s instructions. They were appointed for a reason and cannot deviate from that,” he stated.

Wale Adedayo, a former local government chairman in Ogun State, urged current chairmen to resist any attempts by governors to coerce them into returning their allocations. Adedayo, who was removed from his position for accusing the governor of misappropriating local government funds, also called on the Federal Government to establish mechanisms to track and monitor these funds. “If competent local government chairmen are elected, they will not agree to any arrangement where governors receive back their allocations. President Bola Tinubu should consider implementing a system similar to what President Shehu Shagari had, where presidential liaison officers monitored local government activities across states,” he said.

Babatunde Emilola-Gazal, the former chairman of the Ogun State chapter of the Association of Local Governments of Nigeria, advocated for a review of the revenue-sharing formula to provide local governments with more funding. He argued that the current formula is “unfair and skewed” in favor of both state and federal governments. Emilola-Gazal explained that local governments currently receive only 20.6% of the federation account, while state governments take 26% and the federal government 52%.

“There is a pressing need to revisit the revenue-sharing formula to ensure local governments receive a fairer share. It’s unacceptable that 774 local governments receive just 20.6% while the federal government claims over half,” he added.

Mohammed Abubakar, Secretary-General of the Association of Local Governments of Nigeria, confirmed awareness of the governors’ schemes. He noted, “While ALGON is aware of the situation, the leadership sometimes reflects the sentiments of the governors, who exert considerable control over the chairmen. However, the board of trustees is actively addressing these concerns and will soon communicate with the necessary authorities to implement the needed changes.”

Abubakar mentioned that some governors have attempted to divide the association, but the leaders are countering those efforts.

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