Governors across the 36 states of the federation have indicated their readiness to implement the financial autonomy granted to the local governments by the Supreme Court in July last year.
Consequently, they have directed their chairmen of local government areas (LGAs) to open their accounts for the direct disbursement of their funds from the Federation Account Allocation Committee (FAAC).
It was learnt that the governors’ decision to finally embrace the autonomy for the third-tier of government was reinforced by President Bola Tinubu’s assurance that his administration was not out to take over the control of local governments from them through the apex court judgement.
Tinubu stated this in Lagos when the governors led by Vice President Kashim Shettima paid him New Year homage on Wednesday.
While receiving the governors, Tinubu stressed their critical role in driving Nigeria’s development and prosperity, saying their leadership at the subnational level was central to achieving food security, economic prosperity and rapid national growth.
The meeting was attended by members of the Nigeria Governors Forum (NGF) at his Ikoyi residence.
Tinubu told them that, “You are the most important link to Nigeria’s prosperity and development. The federal government accounts for about 30 to 35 per cent of the allocated revenue; the rest comes to you. The agricultural value chain depends on you. You own the land, and the job is in your hands.”
He called for stronger collaboration between the federal and state governments to address pressing challenges, including local government autonomy, agricultural productivity and currency stability.
The president, who expressed his commitment to local government development and autonomy, stressed its importance for grassroots development and dispelled the rumours of disagreement with the governors.
“We will not fight within us. I will drive the change; you control your local governments. You can restore hope by effectively fulfilling what the people expect at the grassroots level.
“There was gossip that we had disagreements on local government autonomy. No. Just drive development at the local government. Nobody wants to take them away from you, but we need collaboration. Let’s do it together and ensure Nigeria is better off for it,” he said.
Prior to the meeting, there were indications that the direct disbursement of funds to the councils would begin this month.
A national daily (not LEADERSHIP Weekend) and an online news medium reported that the payment of funds to the councils’ accounts would begin in January.
Some council chairmen and top state officials, who spoke with our correspondents, said they were aware of the development.
The Osun State government said it complied with the federal government’s directive to states to open accounts, where local government allocations from FAAC would be paid.
The state president of NULGE, Dr Kehinde Ogungbangbe, told LEADERSHIP Weekend in Osogbo that the implementation of local government autonomy was not under any threat in Osun State.
According to him, the state government took a decisive action by instructing all the local governments to open accounts so that their allocation would go directly from the Federation Account which they have done.
He said, “The first thing they did was they informed all the local governments to open an account so that the allocation will be going directly from the Federation Account which I believe they have done. We don’t have any threat at all whatsoever.
“I think the one they will receive directly from the Federation Account now will be from this next allocation (January) and the accounts in which the money will go into have been opened by all the local governments in Osun. That arrangement was coordinated by the Ministry of Local Government.”
The state commissioner for Information and Public Enlightenment, Oluomo Kolapo Alimi, said since it is a federal government policy, it becomes imperative for states to key-into it and Osun State was not an exception.
He however urged the federal government to factor-in all that is necessary to be taken care of by the local governments such as payment of primary school teachers’ salaries and those of traditional rulers.
In Kwara State, some council chairmen said they were eagerly awaiting the take-off of the direct allocations from FAAC this month.
Though, ALGON leadership was yet to be constituted in the state, one of the council chairmen, Mr Femi Yusuf, who spoke on behalf of his colleagues, declared, “For us council chairmen in Kwara State, we are 100 percent ready for the take-off of direct allocation from FAAC. It will fast-track the development of our local governments and state. It will complement what the governor has been doing at the state level.
“From his actions since the ruling of the Supreme Court on local government autonomy, the Kwara State governor is ready to key into that policy. We want to appreciate Governor AbdulRahman AbdulRazaq for his fatherly role and what he has been putting on ground for us to have a seamless and less cumbersome transition from the old FAAC allocation system to the new order.”
Yusuf, a former chairman of Kwara State House of Assembly Service Commission and incumbent chairman of Ifelodun local government area, praised President Tinubu for supporting the granting of autonomy to the local governments in the country.
The national president of the apex socio-cultural groups in Ilorin Emirate – Ilorin Emirate Descendants Progressive Union (IEDPU) – Alhaji AbdulMumini AbdulMalik, enjoined the council chairmen to make judicious use of their financial autonomy to better the lives of the citizens.
“On restructuring of the polity, the people of Ilorin Emirate strongly believe in Nigeria’s unity and therefore resolved that the restructuring be limited to devolution of power. A step in the right direction in this regard, which the union commends, is the recent granting of local government autonomy.”
In Katsina State, the stakeholders have also declared their readiness to implement LG autonomy.
The state president of the Nigeria Union of Local Government Employees (NULGE), Nasir Wada Mai’adua, said, “We are ready for its implementation in Katsina State. We have all the machinery in place. Technocrats, local government administrators, engineers and professionals from various fields are set for the take-off.”
The state commissioner for local government and chieftaincy affairs, Bishir Tanimu, reaffirmed the administration’s commitment to enforcing the autonomy of the local government system in the councils in the state.
Tanimu pledged strict oversight to ensure that the local governments operate effectively, enabling them to address grassroots’ needs and enhance development across the state.
In Niger State, NULGE and ALGON said they were ready for the implementation of the Supreme Court judgement on local government autonomy.
But the state government said it was yet to receive any workable plan on the implementation of the apex court judgement.
The state leader of NULGE and chairman of the Nigeria Labour Congress (NLC) Comrade Idris Abdulkareem Lafene said his members were ready for the implementation of the judgement.
He said the national secretariat of the union had given them a template at the state level on how to monitor the adherence to the autonomy of the councils.
Lafene said the members of NULGE have been given the mandate to ensure that the chairmen are accountable in the handling of the funds released to them.
The chairman of ALGON and Agwara local government area, Hon Iliyasu Zakeri, said the mandate of his members is to abide by the Nigerian constitution.
The state commissioner for Local Government and Chieftaincy Affairs, Hon Muazu Jantabo, said, “As a state, we don’t have any view on how the new arrangement is going to be implemented; we don’t have any workable plan on how it will be implemented.”
He however said that many people were worried about how the new system would affect the State Universal Basic Education and other areas that were funded jointly by both the state and the councils.
In Anambra State, both the state government and councils have expressed their readiness to comply with the Supreme Court verdict on autonomy for the grassroots administration.
The state commissioner for Local Government and Chieftaincy Affairs, Chief Tony-Collins Nwabunwanne said the Chukwuma Soludo administration had begun compliance with the judgement.
He said that following the Supreme Court judgement, the state government had been crediting the accounts of the 21 local governments with their allocations from the Federation Account on a monthly basis.
He said, “We (Anambra State) are fully prepared to comply with the Supreme Court judgement on local government autonomy. We have even sensitised the elected local government officeholders on how to manage their allocations prudently. So, Anambra State government is ready to comply with the Supreme Court judgement.”
The chairman of Orumb-North local government area, Hon Casmir Nwafor and his Awka-North counterpart, Hon ThankGod Anagor, said they were ready to deploy whatever amount accrued to their councils prudently to the benefit of their people.
Nwafor, for instance, said that immediately he heard the news that FAAC would be paying local governments their allocations directly, he had proposed N7billion to the councillors for approval as the local government budget for 2025.
He said security would be given top priority, followed by agriculture, empowerment, education, health and others.
Also, Anagor (Awka North) said though he had not received information that FAAC would remit the share of every local government directly to their accounts from January, he stated that if it happens, he was prepared to use the money to meet the needs of the people.
In anticipation of improved allocations from FAAC following the abrogation of the state/local government joint account to pave the way for a direct monthly transfer from Abuja, the 31 Akwa Ibom LGAs have jacked up their budgetary estimates for fiscal 2025.
Hitherto, the 31 councils under the old joint account regime supervised by the state government were handed out cash in millions after the joint account session.
Our correspondents gathered the councils are announcing their budgets in billions in anticipation of the jumbo allocations.
For instance, just before the New Year, the chairman of Uyo LGA, Uwemedimo Udo, assented to the N9.608 billion appropriation, which he described as “Budget of Consolidation and Advancement for the 2025 fiscal year.”
“We will prioritise the effective implementation of the budget provisions as funds become available,” he said.
In the same vein, his Ikot Ekpene LGA counterpart, Hon Aniefiok Nkom, raised the budget of the council to N7.471 billion for the fiscal year, explaining that “the Budget of Restoration” is aimed at addressing huge infrastructure and humanitarian crises plaguing the council due to what he described as cash crunch that had slowed down the development of the area over the years.
In Imo State, the chairman of Isiala Mbano local government area, Evangelist Chika Okoroike, expressed his readiness to receive the January allocation from FAAC.
In his contribution, the chairman of Aboh Mbaise council, Hon. Iheukwumere Alaribe, commended FAAC and the federal government for the bold initiative.
The commissioner for Local Government and Chieftaincy Affairs, Hon. Ruby Emele, said the state government had put mechanisms in place for seamless process within the LG system.
She indicated that the state government was well disposed to the formula introduced by FAAC in collaboration with the federal government in compliance with the Supreme Court judgment.
In his contribution, the commissioner for Finance, Hon. Chuck Chukwuemeka, said they were aware of the latest development and had no objections to it. “We have no option than to comply with whatever instruction is placed before us.”
In preparation for the LG autonomy, Governor Sheriff Oborevwori of Delta State in October 2024, charged the 25 council chairmen to implement the new minimum wage for their workers effective November 2024.
The governor also told the leadership of the state chapters of ALGON, Nigeria Union of Teachers (NUT) and NULGE that it must be implemented in their councils.
The Local Government Service Commission also did a physical verification exercise of staff of Unified Local Government Service and Local Government Education Authority/State Universal Basic Education Board (SUBEB).
In a response, the commissioner for Information, Dr Ifeanyi Osuoza, said the administration of Governor Oborevwori was not losing sleep over LG autonomy.
He said the staff audit was in consonance with the approval granted during one of the Joint Allocation Account Committee (JAAC) meetings held at Asaba in October and presided over by the governor.
The state president of NULGE, Ziko Okwudi, said the councils were set for direct funding from the Federation Account as directed by the Supreme Court.
The chairman of Dambatta local government area of Kano State, Hon. Jamilu Abubakar, said the council was ready to utilise the direct allocation from FAAC.
He said it would give them the opportunity to bring development to the grassroots where so many issues/needs such as building and renovation of schools, hospitals, roads, drainages amongst others would be given the needed attention.
Also, the Kano State chairman of NULGE, Abdullahi Aga Gwarzo, expressed happiness over the move, noting that it would boost local government administration and bring development closer to the people at the grassroots.
In Gombe State, the key stakeholders have declined comments on the federal government’s plan to disburse funds directly to the councils.
The stakeholders included Sani Haruna, the state chairman of ALGON and chairman of Gombe local government area, Abdullahi Saleh, state chairman of NULGE, and Mohammed Magaji, the commissioner for finance and economic development.
Haruna was unreachable through his mobile phone while Saleh did not respond to several calls and text messages sent to him by our correspondent.
Similarly, Magaji (commissioner) declined to respond to a WhatsApp message sent on Tuesday afternoon and a reminder a day after.
