Governors vs. Grassroots: Supreme Court’s Local Government Autonomy Ruling Faces Sabotage
Nearly nine months after the Supreme Court granted full financial autonomy to Nigeria’s 774 local government areas (LGAs), implementation of the historic judgment is being quietly sabotaged—this time from within.
Investigations by The PUNCH have uncovered a deepening standoff between the Federal Government and several state governors, many of whom have allegedly resorted to intimidation, threats, and policy delays to prevent local government chairmen from opening designated Central Bank of Nigeria (CBN) accounts for direct allocation payments.
“Our governor has threatened us not to open accounts with the CBN for the direct payment of our allocation,” a visibly frustrated LGA chairman from a South-East state told The PUNCH, requesting anonymity out of fear of political retaliation.
According to the Supreme Court ruling, LGAs are to receive their monthly allocations directly from the Federation Account, a long-sought step towards grassroots development and financial independence. However, several chairmen across the country claim they are being coerced into compliance with governors’ preferences—including proposals to return 50% of their allocations in exchange for the right to open the accounts.
Federal Push, State Resistance
In response to the court ruling, the Federal Government set up a high-level implementation panel, which directed the CBN to open individual accounts for all LGAs. The Accountant-General of the Federation, Attorney-General Lateef Fagbemi (SAN), and key stakeholders have also been in negotiations to iron out implementation logistics.
But The PUNCH has learned that the CBN process has been sluggish, with only Delta State LGAs having submitted full account details to date. Compounding the delays are what sources describe as “stringent requirements” from the apex bank—such as the submission of two-month bank statements—posing logistical challenges for many LGAs.
An LGA chairman in the South-West explained, “All council areas here can’t meet up with the conditions because, frankly, governors have control of the accounts. They give us whatever they feel like.”
In Benue, a chairman revealed, “They (the governors) are pushing for us to open accounts in commercial banks instead. They know once it’s the CBN, they lose access to our funds.”
Federal Silence, Fragmented Compliance
The vacuum in presidential clarity is further muddying the waters. Though governors reportedly met with President Bola Tinubu to lobby for commercial bank accounts over CBN accounts, it remains unclear where the presidency stands.
In Nasarawa, where officials claim all CBN accounts are opened, the state’s NULGE chairman, Adamu Sharhabilu, expressed frustration: “We have yet to receive direct allocations. The money is still sent to Joint State-LGA Accounts.”
Another Nasarawa chairman contradicted this optimism, blaming the Federal Government for failure to bypass state structures and send allocations directly. “We have so many accounts ready to receive the money, but they won’t send it,” he lamented.
A Patchwork of Responses Nationwide
Across the country, compliance is uneven. In Kwara, NULGE boss Seun Oyinlade said, “We’re not aware any of our 16 LGAs have opened CBN accounts. We’ll only know when funds are paid.”
In Yobe, March salaries were reportedly still paid through the Ministry of Local Government, with no trace of direct payment implementation.
In Zamfara, ALGON chairman Alhaji Samaila Moriki admitted no accounts had been opened yet, citing the need for “further instructions.”
Meanwhile, in Jigawa, ALGON chairman Prof. Abdulrahman Salim insisted the process is “progressing,” with most administrative steps completed and biometric registration pending. But a NULGE source cast doubt, warning that governors could “change the process entirely” at will.
Even in Kano, where 44 LGAs await CBN verification, no accounts have been activated. “We’ve read about it in the newspapers,” said Garko LGA chairman Saminu Garko, highlighting the information vacuum between federal institutions and local authorities.
A Standoff with National Implications
The Supreme Court ruling had sparked hope for true devolution of power, ending decades of financial strangulation of LGAs by state governments. Yet, the fierce pushback from governors now threatens to render the landmark judgment toothless.
One chairman summarized the national mood:
“What’s the point of autonomy on paper if governors still hold the purse strings?”
As grassroots development stalls, pressure is mounting on the Federal Government to enforce compliance and on the CBN to ease its procedural barriers.
But unless decisive action is taken soon, the dream of an empowered third tier of government may remain just that—a dream.
