CBN, LG Autonomy and Need for Financial Probity, by Lawal Nasir

When in July 2024, the Supreme Court gave a sentence that actually granted financial autonomy to the 774 councils of the local government in the country, the development was received with conflicting reactions. While many celebrated the position of the nation’s apical court as regards the third level of the government, Nigerian governors were not clearly happy because, over the years, the state managers have appropriate the resources intended for local governments to themselves.

In fact, the total taking of governors on the local government was so strong that many considered impossible to implement the Supreme Court sentence. Even the judge Emmanuel Agim, who read the main judgment of the Apex court, mentioned the influence of governors when he reproached the decennial refusal of state governments on financial autonomy for local governments.

Governors had in 2019 under the then president Muhammadu Buhari successfully frustrated the decision by the Nigerian financial intelligence unit (Nfiu) who regulate transactions on state and local joint accounts, limiting cash withdrawals from the accounts of local governments to a maximum amount of N500,000 per day with penalties for banks that have not managed to compromise.

But the Bola Tinubu administration was determined to implement the judgment. The creation of an inter-ministerial committee of 10 members followed to implement the sentence of the Supreme Court. In a broadcast that marks the 64th anniversary of Nigeria’s independence, President Bola Tinubu said: “As part of our efforts to redesign our political economy, we are resolved in our determination to implement the Supreme Court sentence on the financial autonomy of local governments”.

However, state governors continued their hall against the application of the Supreme Court sentence. Governors continued to mount the pressure on the best officials of the Tinubu Administration in Soft-Pedal on the implementation of the Court Apex sentence.

As a result of these developments, the government actions have been subjected to all types of interpretations, most of which largely out of the mark. For example, he considers the story entitled “Lgas Financial Autonomy must face a new obstacle to the CBN question” on the business day of February 2, 2025. According to history, which was based on sources, “local governments in Nigeria are facing a new challenge in their monthly push directly from the federation’s accounts, as they must now present an audit to two years in Central Bank of Nigeria (CBN).

Continuing, he said: “The remittance of direct revenues, initially scheduled for January, was postponed after many of the 774 local councils have provided the details of the account requested. Consequently, their share N361,754 billion compared to the total distribution revenues of N1,424 for the month has been unrelated through state governments.

“The CBN has started the process of opening the accounts for local governments to facilitate direct payments, in line with the financial autonomy guaranteed through a sentence of the Supreme Court in July 2024.

“However, with the next allocation due in a few weeks, concerns are growing for the ability of the advice to present the auditing reports before the February meeting of the allocation committee of the Federation account (FAAC).

Sources of the CBN confirmed that the bank would not proceed with the openings of the accounts without a clear understanding of the financial position of each local government. “

Why should a move aimed at guaranteeing responsibility, probity and transparency are considered an obstacle? Are we saying that local governments have no trace of their expenses? What are you trying to say exactly.

The CBN, we must not forget, is an independent institution with its own standard operating procedure (Sop). But he is also held responsible by the relevant institutions and government agencies. If the CBN should always present its controlled relationship despite its independence, why should LGS be subjected to the same thing? How many Nigerians will be satisfied with the explanation of the CBN when the figures cannot add up?

Unfortunately, rather than supporting the position of the CBN on liability, the National Union of employees of the local government (Nulge), through its national president Hakeem interior, is warning the Apex bank against state governors to undermine the financial autonomy of the local government councils.

“There is no local government without at least three years of controlled accounts. This is made possible due to the presence of the auditors at the local government level.

“The CBN must understand that it cannot go against a sentence of the Supreme Court. No organization should afford to be used by governors against the realization of autonomy for local governments, “said Coams from the fist.

So, if LGS really have at least three years of controlled accounts, the logical demand to ask is: what makes it difficult to submit these controlled relationships and satisfy the application of the CBN?

Unlike local governments, which can still be influenced by state governors through the instrumentality of state electoral bodies, the CBN is not considered in any way to state governments. While the Nigerians of the majority are in support of LG autonomy so that the development projects can be performed at the basic level, it will be committed suicide in a vague and fraudulent way. Going to court and whatever the result, it cannot change this fact.

● Nasir is a journalist based in Abuja.