According to the OAGF, two key challenges are preventing direct allocation of funds to local government areas (LGAs):

1. Failure to Submit Account Details – Many LGAs have yet to provide their account information, which is crucial for direct fund transfers.
2. Uncertainty Over Elected Leadership – Determining which LGAs have democratically elected officials is a prerequisite for receiving funds directly.

Delta State Leads in Compliance

According to minutes from the Federation Account Allocation Committee (FAAC) Technical Sub-Committee meeting, only Delta State’s 25 LGAs have submitted their account details for direct payments so far. The meeting, chaired by Accountant General of the Federation (AGF) Oluwatoyin Madein, emphasized that consultations with the Attorney-General of the Federation (AGF) are ongoing to establish a clear process for account submissions.

Madein highlighted that while a framework for direct allocation is in progress, identifying which LGAs have properly elected chairmen remains a major challenge. She noted that ensuring these councils receive funds without state interference requires addressing several complex legal and administrative issues.

CBN Begins Profiling LGA Officials

To enhance financial accountability, the Central Bank of Nigeria (CBN) has begun profiling LGA chairmen and account signatories as part of its Know Your Customer (KYC) procedure. The Director of Legal Services at the CBN, Kofo Salam-Alada, confirmed that collaboration with the AGF’s office is ongoing.

“This process ensures transparency in local government fund management,” Salam-Alada stated. “We have also written to the LGAs regarding this.”

ALGON Denies Receiving Communication from CBN

Despite CBN’s claims, the Association of Local Governments of Nigeria (ALGON) insists it has not been contacted regarding signatory verification. ALGON’s Abia State Chairman and Mayor of Isuikwuato LGA, Chinesu Ekeke, expressed surprise at the reports.

“I have not received any invitation for signatory verification, nor have I seen any official communication on the matter, even from ALGON headquarters,” he said.

Delayed Implementation Sparks Concerns

The delay in enforcing the Supreme Court’s financial autonomy ruling has sparked concerns among local government employees and stakeholders. The National Union of Local Government Employees (NULGE) recently cautioned the CBN against enabling state governors to undermine local government independence.

Recall that the Supreme Court, in its landmark judgment, declared that state governors must no longer control LGA funds, mandating the Accountant-General to pay allocations directly to local governments. The court also ruled that withholding these funds is unconstitutional.

Eight Months Later, Autonomy Yet to Take Effect

Despite the court’s clear directive, eight months have passed, and local governments across the country are still waiting for financial independence. The question remains: Will the federal government finally enforce full autonomy, or will political interference continue to stall progress?