The implementation of the Supreme Court judgment granting full autonomy to Nigeria’s 774 local government areas (LGAs) has hit another major roadblock, as several state governors are reportedly warning council chairmen against opening accounts with the Central Bank of Nigeria (CBN) for direct allocation payments.
Nearly nine months after the Supreme Court’s verdict supporting LG autonomy and mandating direct disbursement of federal allocations, the process remains stalled. A panel set up by the Federal Government had directed the CBN to open dedicated accounts for the LGAs, but this has led to a back-and-forth between the apex bank and council chairmen.
Talks involving the immediate past Accountant-General of the Federation, Oluwatoyin Madein, and the Attorney-General and Minister of Justice, Lateef Fagbemi (SAN), revealed that one major issue slowing the process is the identification of LGAs with democratically elected officials. So far, only Delta State LGAs have submitted account details.
Governors Allegedly Intimidate Council Chairmen
Fresh investigations show that several governors are actively pressuring council chairmen to reject CBN accounts, which would cut off gubernatorial access to local funds.
One South-East council chairman revealed:
“Our governor has threatened all the chairmen not to open accounts with the CBN. We even proposed remitting 50% of our allocation to him monthly as a compromise, but he refused.”
In many states, governors fear losing control over LG finances, hence their opposition. Meanwhile, some prefer LGs to open accounts with commercial banks to maintain influence. The President’s stance on the matter remains unclear.
Another LG chairman from Nasarawa pointed out that although there’s no sign of sabotage in the state, allocations are still funneled through joint accounts managed by the Ministry of Local Government and Chieftaincy Affairs — not directly from the Federation Account.
A chairman from the South-West said CBN’s demand for two-month bank statements was a major obstacle:
“Most councils can’t meet that condition because governors are the ones spending the allocations. LGs only receive whatever the state decides to give.”
In Benue, an official alleged collusion by political actors to frustrate autonomy:
“Governors want LGs to use commercial banks so they can keep controlling the funds. CBN accounts would end that.”
Mixed Compliance Across States
In contrast, Nasarawa’s NULGE chairman, Adamu Sharhabilu, told that all LG accounts had been opened in anticipation of direct funding, but no funds had been received yet. Another Nasarawa official blamed the Federal Government for failing to implement the Supreme Court ruling fully.
In Kwara, NULGE chairman Seun Oyinlade said none of the 16 LGs had opened CBN accounts and couldn't confirm if the state government was against direct allocations.
In Yobe, LG staff in Damaturu still receive salaries via the Ministry of Local Government, which contradicts the autonomy directive. They also haven't benefited from the new minimum wage, unlike state workers.
In Zamfara, ALGON chairman Samaila Moriki confirmed LGs had not opened CBN accounts, awaiting further directives. Similarly, in Kano, Garko LGA chairman, Saminu Garko, said none of the 44 LGs had completed the account process, despite hearing that the CBN had initiated it.
Some Progress in Jigawa
Jigawa appears to be making headway. ALGON state chairman, Prof. Abdulrahman Salim, assured that all 27 LGAs are progressing with the process.
“The CBN has been instrumental in providing a platform for direct allocation. Most steps are complete; we’re only awaiting biometric capturing.”
However, a NULGE official expressed skepticism, saying governors could still derail the process if they choose.
Summary
The direct payment of LGA allocations, central to enforcing the Supreme Court’s ruling on LG autonomy, continues to face political resistance, logistical hurdles, and administrative delays — especially from governors wary of losing control over local funds. While a few states show signs of compliance, widespread implementation remains uncertain.
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