The Account-General of the Federation, Oluwatoyin Madein and the Attorney-General and Minister of Justice Lateef Fagbemi, SAN, have commenced talks on the implementation of the July 11, 2024 Supreme Court judgment on local government autonomy as direct allocation disbursement to the 7774 LGAs continues to suffer delay.
In a move to enforce the verdict, the two senior officials have been holding consultations on the modalities for submitting LGAs’ bank accounts for direct payment of council allocation but are reportedly facing challenges identifying LGAs with democratically elected officials.
This was contained in the Federation Account Allocation Committee Technical Sub-Committee meeting minutes obtained by The PUNCH on Sunday.
The minutes, shared by an insider, indicate that only the local government areas in Delta State have submitted their account details to the Office of the Accountant-General of the Federation.
It revealed that the submission of account details by the Delta State LGAs was confirmed during the FAAC Technical Sub-Committee meeting held on January 17, 2025, at the Federal Ministry of Finance Headquarters, Abuja.
The document showed that while the OAGF had started receiving account details from various sources, only Delta LGAs had fully submitted their details.
Some LGAs reportedly provided account details directly, while others did so through their state governments.
Despite this progress, discussions on the modalities for submitting the accounts are still ongoing, with consultations with the AGF yet to be concluded.
According to the Accountant-General, “The Office had started receiving account details from various sources; some directly while others were going through the states.
“So far, only local governments in Delta State have provided account details. However, consultation with the Attorney-General of the Federation on the modalities of the submission of the accounts was still ongoing.”
The minutes further indicated that concerns were raised about the legal procedures for submitting these accounts, particularly in relation to constitutional provisions.
The meeting, chaired by the Accountant General highlighted that the process had encountered challenges, particularly in identifying LGAs with properly elected leadership.
The minutes stated that a key obstacle to implementing the system was determining which local government councils had constitutionally elected chairmen.
Madein reportedly noted that this foundational stage remained unclear and that for local governments with duly elected leadership, the question of mechanisms to ensure they receive direct allocations must be addressed.
She explained that several complexities needed to be resolved before the system could function effectively.
The minutes further showed that Madein said that the Office of the Accountant General of the Federation would seek clarification from the AGF to assess the current status and determine the next steps.
The Accountant General of Niger State, referred to as AG Niger in the document, suggested that once the AGF provides the necessary modalities, a formal letter should be sent to the OAGF outlining the required steps for local governments to follow in submitting their accounts.
The representative emphasised that without clear guidance, actions may vary across different states, potentially leading to inconsistencies in implementing financial autonomy for LGAs.
The document also revealed that the chairman directed the Director of the Federation Account to take note of concerns regarding communication with the Attorney General’s office.
It read in part, “The chairman responded that a system was set to be implemented, but the initial challenge lay in determining which local government councils had constitutionally elected chairmen. She remarked that this foundational stage remained unclear.
“Additionally, for those with properly elected leadership, the question arose as to what mechanisms would be deployed to ensure they receive direct allocations. This was because numerous complexities needed to be addressed.
“The chairman added that OAGF would seek clarification from the Attorney-General of the Federation to assess the current status and how to progress regarding the current month.
“The chairman directed the Director Federation Account to take note of the concerns in communicating with the Attorney-General’s office.”
With Delta State LGAs leading the way in submitting account details, other states are expected to follow suit once clear directives from the AGF are issued.
One of the newly elected local government chairmen, in Ondo State, speaking on the condition of anonymity, disclosed that LG’s bank account would be submitted after the Joint Allocation Committee meeting today (Monday).
“We are going to submit the accounts to the CBN tomorrow (today) after the JAC meeting,” he stated.
The PUNCH earlier reported that the Central Bank of Nigeria had commenced profiling the chairmen and signatories to the bank accounts of the 774 local government areas in the country, as part of processes to commence local government autonomy.
The Director of Legal Services at the CBN, Kofo Salam-Alada, explained that this was necessary to ensure financial accountability.
However, the Association of Local Governments of Nigeria said it had received no communication from the apex bank concerning the opening of bank accounts.
Providing an insight into the delayed fund disbursement, the CBN legal director disclosed that the apex bank had no direct banking relationship with the LGAs.
Salam-Alada stated, “This is all about standard procedure in the form of KYC (Know Your Customer). Anyone who will be a signatory to the account must be profiled. The process is ongoing, and we are collaborating with the AGF’s office. We have also written to the LGAs.”
He urged the Association of Local Government of Nigeria to encourage its members to engage with the CBN at the local level, assuring that once proper documentation is completed, the accounts will be operational within 48 hours.
“We are using this opportunity to call on the 774 local government chairmen to come forward for their documentation. No account can be operationalised without the prerequisite Customer Due Diligence,” he added.
However, ALGON’s representative at the event, Sam Akala, disputed the CBN’s claim, stating that he was unaware of any official communication from the apex bank regarding the account opening process.
An insider source familiar with the development, who spoke to The PUNCH on the condition of anonymity, confirmed that the apex bank had engaged with members of the ALGON regarding the matter.
The insider revealed that while guidelines for the process are currently being drafted, the framework has yet to be finalised.
The source added that once completed, these guidelines would pave the way for the opening of dedicated accounts to facilitate the implementation of financial autonomy for local governments.
