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Monday, February 10, 2025

NULGE accuses CBN of aiding governors in blocking LG’s financial autonomy

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The National Union of Local Government Employees (NULGE) has cautioned the Central Bank of Nigeria (CBN) against collaborating with state governors to undermine the financial independence of local government councils.

This follows claims that the apex bank has refused to open accounts for local governments, citing non-compliance with auditing requirements.

NULGE President Hakeem Ambali refuted allegations that local councils lack two years of audited accounts, asserting that all councils have at least three years of audited financial records.

Ambali emphasized that local governments are prepared to submit these records to facilitate direct allocation payments in line with a Supreme Court ruling mandating the Federation Account Allocation Committee (FAAC) to remit funds directly to local government accounts.

Ambali criticized the CBN for allegedly delaying the implementation of the July 2024 Supreme Court judgment, which declared state governors’ control over local government funds unconstitutional.

He stressed that the apex bank must not defy the court’s decision and urged it to issue clear guidelines for opening accounts, assuring that councils would comply promptly.

An anonymous auditor noted that the required audits could be completed within one to three months, depending on the auditing firm’s capacity.

However, this delay may prevent local governments from receiving their February allocations directly, with funds likely to be routed through state accounts instead.

Despite the Supreme Court’s directive, reports indicate that allocations disbursed between July and December 2024—totalling N2.075 trillion—were still paid into state accounts, sparking frustration among NULGE and the Association of Local Governments of Nigeria (ALGON).

This figure marked a 72.06% increase from the N1.206 trillion allocated during the same period in the previous year, with December recording the highest disbursement.

Federal authorities, including Finance Minister Wale Edun, cited “practical impediments” to the judgment’s implementation, revealing that a committee is reviewing its feasibility.

Meanwhile, Attorney General Lateef Fagbemi warned state governors against defying the court’s ruling, threatening legal action for continued non-compliance.

He also cautioned local government officials against mismanaging public funds, emphasizing that financial autonomy is intended to strengthen grassroots governance, not for personal enrichment.

ALGON Secretary-General Mohammed Abubakar expressed frustration over the delay, accusing unnamed actors of sabotaging local government autonomy.

He criticized the government’s lack of transparency, stating that stakeholders remain unclear on the next steps for enforcing the Supreme Court’s decision

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