Governors Block LGA Chairmen From Accessing Autonomy Funds Through CBN Accounts

According to a report by The PUNCH, the implementation of the Supreme Court’s ruling on local government autonomy has encountered significant obstacles, with state governors actively blocking the opening of accounts with the Central Bank of Nigeria (CBN) for direct payment of federal allocations.

This decision follows the court’s directive to grant local governments autonomy, ensuring they receive their allocations directly from the Federation Account.

However, nearly nine months after the ruling, governors have been pressuring council chairmen to avoid opening these accounts, citing concerns over losing control of local government funds.

ALSO READ: Four Nigerian Gospel Singers Die In Ghastly Accident

While some local governments, such as those in Delta State, have complied and submitted their account details to the CBN, many others are facing resistance.

In several states, governors have used intimidation tactics, with some chairmen revealing that governors have threatened to withhold their allocations unless they comply with the governors’ preferences, which often involve using commercial banks instead of the CBN.

Governors are reportedly fearful of losing access to local government funds, which they have historically controlled. Additionally, the stringent requirements imposed by the CBN, such as submitting a two-month statement of account, have further delayed the process.

Some local government chairmen have expressed frustration, stating that their councils are ready but are waiting for directives from higher authorities.

In contrast, other states like Nasarawa have made progress, with local governments opening accounts and preparing to receive allocations directly from the federal government.

The situation highlights a deep divide between state and local governments, with many local officials advocating for the full implementation of the Supreme Court ruling, which would provide them with greater financial independence.