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Governors Across Nigeria Oppose Direct CBN Allocation to LGs, Warn Chairmen Against Autonomy Move
Recent findings have uncovered a growing resistance by state governors against efforts to grant full financial autonomy to local governments. This resistance comes despite a landmark Supreme Court ruling from nine months ago, which mandated direct federal allocations to Nigeria’s 774 local governments through accounts with the Central Bank of Nigeria (CBN).....KINDLY READ THE FULL STORY HERE▶
To implement this ruling, a federal panel was established to oversee the transition. Based on its recommendations, the CBN was directed to open dedicated accounts for local governments to receive allocations directly from the Federation Account. This move was intended to curtail the long-standing interference by state governors in local government finances.
However, the process has hit significant roadblocks. Only local governments in Delta State have so far submitted their account details, while other states remain non-compliant. According to insider accounts, some governors have resorted to threats and coercion, warning council chairmen not to proceed with opening CBN accounts.
A chairman from the South-East disclosed that even a compromise proposal—allowing governors to retain 50% of the monthly allocation—was rejected by one governor. “We tried negotiating with him, but he outright refused. He wants total control,” the chairman revealed.
Many local government leaders believe the core issue is the governors’ fear of losing access to funds traditionally under their control. Others cite CBN’s rigorous conditions for opening accounts, such as providing two months of financial statements, as a major stumbling block. However, these challenges are compounded by the fact that in many states, local governments lack such documents, as their finances are still tightly managed by state authorities.
A South-West chairman emphasized that this situation is not isolated: “Most states are in the same boat. Governors control everything and only give LGs what they feel like.”
As the federal government continues to push for full compliance with the Supreme Court’s decision, the battle between decentralization and entrenched power structures appears far from over.
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