According to EkweAnaedo, The debate over local government autonomy in Nigeria has reached a boiling point, with the Finance Commissioners Forum firmly pushing back against the federal government’s plan to require local government councils to open accounts with the Central Bank of Nigeria (CBN).
At the center of the controversy is the federal government’s proposal to pay local governments’ monthly revenue allocations directly into CBN accounts, following the Supreme Court’s recent ruling granting financial autonomy to local government councils.
This ruling was seen as a major victory for local governments, but it has sparked a fierce disagreement over how the funds should be managed.
Initially, state governors had persuaded the federal government to delay the direct payment of local government allocations to resolve some technical issues.
The request for a delay was granted, and it seemed that the matter was heading toward a resolution.
“However, governors unexpectedly launched a campaign to prevent localgovernments from opening accounts with the CBN, arguing that there is no legal requirement for local governments to maintain such accounts.
Instead, they insist that the funds should continue to be channeled through commercial banks, as has been the practice for years.
Akin Oyebode, Chairman of the Finance Commissioners Forum, confirmed the states’ position in an executive interview with Journalists.
Oyebode, stated that forcing local governments to open accounts with the CBN would be illegal, as local governments have been operating accounts with commercial banks without any constitutional infringement.
“You can’t force me to open an account,” Oyebode said. “No local government, to my knowledge, has gone to say we want an account in the CBN. Local governments already have bank accounts with commercial banks.”
The debate over whether local governments should receive their revenue directly or through the States/Local Government Joint Account (JAC) is also central to the dispute.
Oyebode emphasized that this issue is more of an administrative matter than a constitutional one, as the JAC system is enshrined in Nigeria’s constitution.
He noted that Section 7 of the 1999 Constitution grants state Houses of Assembly the authority to make laws governing local government operations, meaning that states overseeing local government finances are acting within their legal bounds.
“The conversation as to whether you pay local governments directly or through JAC is an administrative discussion,” Oyebode said. “JAC itself is a provision in the constitution.”
As the debate continues, the issue of local government financial autonomy remains unresolved, with both sides standing firm in their positions.
The outcome of this standoff will likely shape the future management of local government finances and the broader framework of governance in Nigeria.
Echezona Okafor.
