Local Government Autonomy: Governors Take New Steps To Postpone Implementation

Local Government Autonomy: Governors Take New Steps To Postpone Implementation....KINDLY READ THE FULL STORY HERE▶

As the deadline for the submission of the inter-ministerial committee’s report on the Supreme Court ruling regarding Local Government Areas (LGAs) autonomy approaches, state governors are ramping up their lobbying efforts to delay the enforcement of the ruling. The committee, led by the Secretary to the Government of the Federation, George Akume, has completed its work and is expected to deliver its report by October 13, according to PUNCH sources…..CONTINUE READING 

Under former President Muhammadu Buhari, the Nigerian Financial Intelligence Unit (NFIU) established a regulation effective June 1, 2019, prohibiting transactions involving Joint Accounts of State and Local Governments. This directive mandated that funds be directly deposited into local government accounts and limited daily cash withdrawals from these accounts to a maximum of N500,000, imposing penalties on banks that failed to comply.

State governors, represented by the Nigerian Governors’ Forum, opposed this regulation, ultimately leading to the NFIU’s concession. In May, the Federal Government, through the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, filed a lawsuit aimed at challenging the governors’ power to receive and withhold federal allocations intended for LGAs. The lawsuit sought to prevent governors from unilaterally dissolving democratically elected local councils and appointing caretaker committees, arguing that the constitution requires a democratically elected local government system.

On July 11, 2024, the Supreme Court delivered a landmark judgment affirming the financial autonomy of Nigeria’s 774 LGAs, ruling that governors could no longer manage or withhold funds designated for the councils. The seven-member panel, led by Justice Garba Lawal, deemed it illegal and unconstitutional for governors to control LG funds. The court directed the Accountant-General of the Federation to ensure that LGA allocations were paid directly to their respective accounts, declaring the non-remittance of funds by the 36 states unconstitutional.

On August 20, the Federal Government established a 10-member inter-ministerial committee tasked with implementing the Supreme Court’s ruling on local government autonomy. This committee comprises the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Attorney General of the Federation and Minister of Justice, Lateef Fagbemi; Minister of Budget and Economic Planning, Abubakar Bagudu; the Accountant-General of the Federation, Oluwatoyin Madein; and the Governor of the Central Bank of Nigeria, Olayemi Cardoso, among others. The committee’s main goal is to ensure that local governments receive full autonomy, allowing them to operate effectively without state government interference.

In his address on Nigeria’s 64th Independence anniversary, President Tinubu reiterated his commitment to uphold the financial autonomy of local governments as determined by the Supreme Court. He stated, “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.”

Sources within the Presidency, speaking anonymously, revealed that governors are exerting pressure on high-ranking officials to moderate the implementation of the Supreme Court ruling. However, one official emphasized the President’s commitment to the ruling’s enforcement, stating, “The process is underway, and governors are already lobbying to stall its implementation as the panel prepares to submit its report next week. Implementation will begin shortly, with the ministries of finance and justice finalizing the details.”

Hakeem Ambali, the National President of the National Union of Local Government Employees (NULGE), confirmed that the inter-ministerial committee would submit its report by October 11. He added, “A technical committee has been established under the Secretary to the Government of the Federation, and we expect implementation to commence promptly, as mandated by the Supreme Court. The President’s speech has reassured us that this will happen.”

In response to the governors’ attempts to hinder the enforcement of the Supreme Court ruling, civil society groups, including the Centre for Accountability and Open Leadership and the United Global Resolve for Peace, have called on the Federal Government to expedite the implementation of local government autonomy. Debo Adeniran, chairman of CACOL, criticized the governors’ self-serving tendencies and their control over local governments. He asserted, “They are pressuring all fronts to ensure that the implementation of that order does not occur. This lobbying is unnecessary and unwarranted; the President should resist it. The rule of law must prevail, and nothing should obstruct it.”

Olaseni Shalom, Executive Director of UGRP, urged the President to sponsor a bill in the National Assembly to enforce autonomy. He emphasized that while the law regarding LG autonomy is clear, it is not new, having been brought to the Supreme Court for interpretation. He noted the need for the Presidency to clarify the law further instead of merely forming a committee.

At a recent event, Peter Ahmeh, the National Secretary of the Coalition of United Political Parties (CUPP), stressed the importance of immediate action by the Federal Government to implement the Supreme Court ruling without delay. He stated, “The judgment impacts the financial autonomy of local governments, not their administrative autonomy.” He argued that the Federal Government should not require agreements with state governors to enact a valid court judgment, urging swift action against any attempts by governors to delay enforcement.

Governor Seyi Makinde of Oyo State dismissed claims that he opposes local government autonomy, asserting his support for elected officials fulfilling their constitutional roles. During the unveiling of the newly built Local Government House and Staff Training School in Ibadan, he remarked, “It is ironic that people claim I am trying to destroy local governments while we are commissioning the first modern building for the LG family.”

He reiterated his commitment to ensuring local governments fulfill their constitutional functions, acknowledging the crucial role they play in delivering democratic benefits to the people of Oyo State.

In Gombe State, Dr. Ahmed Wali, Chairman of Kwami Local Government Area, announced plans for LGs to receive federal allocations directly, stating, “We hope to receive allocations in October, as arrangements are being made to open accounts with the CBN.”

Conversely, Mallam Adam Rufai, the newly elected Chairman of Patigi Local Government Area in Kwara State, indicated that his council has yet to receive any notification regarding the payment of allocations. He stated, “We don’t have any information about whether the allocation will be paid directly to us by the Federal Government.”

Additionally, a senior local government official, speaking anonymously, mentioned that following the Supreme Court judgment, LGs in the state were instructed to open new accounts with a commercial bank for their allocations, although he expressed uncertainty about the actual receipt of direct allocations from the Federal Government.

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