The protracted delay in the direct payment of federal allocations to local governments in Nigeria, despite a Supreme Court judgment mandating such action, has raised concerns and sparked accusations of deliberate obstruction. The Association of Local Governments of Nigeria (ALGON) expresses deep frustration, alleging that those opposed to local government autonomy are exploiting the situation. The Supreme Court’s ruling should have been immediately implemented, yet the federal government’s inaction remains unexplained. ALGON insists it has been sidelined, despite submitting proposals for the direct disbursement of funds to local government accounts. Governors, however, have countered these calls, claiming to have already utilized the funds in the best interests of local governments, citing insufficient allocations to cover healthcare and primary education expenses. ALGON argues that implementation should precede such concerns, and that the governors’ claims of incurred loans on behalf of local governments require scrutiny and verification. The current impasse, characterized by a lack of transparency and open dialogue, hinders progress and fuels suspicion.
ALGON proposes concrete solutions to address the governors’ concerns, advocating for a comprehensive assessment of local government liabilities in each state. An independent consultant would examine these claims, facilitating a structured repayment plan upon the commencement of direct allocations. This approach prioritizes transparency, ensuring that alleged debts are validated and justified, preventing the arbitrary deduction of local government funds. The consultant, already introduced to the Ministry of Finance and the Office of the Attorney General, underscores ALGON’s commitment to a thorough and impartial review. This process aims to foster collaboration and seek mutually agreeable solutions, rather than relying solely on the governors’ perspective, which ALGON perceives as biased and self-serving.
Addressing the governors’ assertion that local government allocations are insufficient, ALGON contends that these claims are unsubstantiated. With local governments receiving a minimum of N500 million monthly, and salary and other expenditures estimated at no more than N300 million, ALGON believes prudent management can address essential services. A detailed analysis of expenditure on education and healthcare is crucial to determine actual liabilities and assess the validity of the governors’ arguments. The appointed consultant will gather data and provide a comprehensive financial analysis, promoting transparency and informed decision-making. ALGON maintains that numerous local government chairmen have privately confirmed the adequacy of their allocations, contradicting the governors’ narrative, but fear reprisal if they speak publicly.
ALGON firmly believes that direct allocation of funds is essential for local government development, aligning with the president’s vision for grassroots empowerment. By channeling resources directly to local governments, the autonomy regime can truly benefit local communities. The current system, where governors control local government finances, disempowers local authorities and hinders development. Direct allocation, coupled with robust monitoring mechanisms, would ensure accountability and efficient resource utilization. The fear of mismanagement raised by some governors is mitigated by the oversight of anti-corruption agencies like the EFCC and ICPC, which have pledged to hold any erring local government chairmen accountable.
Concerns about potential mismanagement by local government chairmen are countered by the presence of established financial oversight mechanisms within local governments, including the Finance and General Purpose Committee. Direct allocation would revitalize these structures, promoting responsible financial management. Furthermore, the argument that 774 potential points of corruption are preferable to 36 recognizes that distributing resources among numerous local governments increases the likelihood of some funds reaching their intended beneficiaries. The current system, where governors control local government finances, has effectively paralyzed local administration, rendering various departments and committees inactive due to lack of resources.
To counter the governors’ attempts to circumvent direct allocation by enacting state laws controlling local government funds, ALGON urges the president to establish a robust monitoring team comprising representatives from the EFCC, ALGON, and other relevant bodies. This team, operating under the Office of the Attorney General, would track the flow of funds, ensuring they reach local governments and are utilized appropriately. ALGON emphasizes that the constitution guarantees financial autonomy for each tier of government, and local government chairmen are not obligated to surrender their allocated funds to any other entity. The Attorney General’s consistent reminders about local government autonomy reinforce this principle, warning chairmen that they are accountable for any misappropriation of funds.
ALGON acknowledges the power dynamics between governors and local government chairmen, recognizing that many chairmen owe their positions to gubernatorial support. However, ALGON stresses that chairmen hold their office constitutionally and should assert their autonomy, emulating the courage displayed by some governors who resisted presidential pressure to control their state funds. The Supreme Court’s judgment clearly prohibits state interference with local government finances, mandating states to hold such funds in trust. Local government chairmen must embrace their constitutional authority and resist undue influence from governors, prioritizing the interests of their constituents. ALGON calls for greater courage among chairmen, urging them to uphold the principles of local government autonomy and resist pressures to compromise their responsibilities. The call for INEC to conduct local government elections, rather than state electoral commissions, aims to restore impartiality and prevent the manipulation of local elections by governors. This, ALGON believes, is crucial for genuine local government autonomy and accountability.
