Group Commends Move to Transfer Allocated Fund Directly to Local Governments

By: Michael
Mike

A group, Northern Christian Youth Professionals (NCYP) has commended the landmark move to ensure the direct transfer of Local Government revenues from the Revenue Allocation Account Committee into the bank accounts of Local Government Councils, noting that this development aligns with the Supreme Court’s historic judgment of July 11, 2024, which affirmed the financial autonomy of local governments, upholding the Federal Government’s suit to enhance their independence.

The group recalled that in a unanimous ruling by a seven-member panel led by Justice Emmanuel Agim, the Supreme Court declared it unconstitutional and illegal for governors to receive and withhold funds allocated to local governments and mandated that local governments must now receive their allocations directly from the Accountant-General of the Federation.

The group said its findings, corroborated by a report by a national daily revealed that a dedicated unit within the Office of the Accountant-General of the Federation (OAGF) has been established to oversee the direct disbursement of funds to the 774 local governments across Nigeria.

The NCYP however expressed concerns about the preparedness of Local Government Council Chairmen to effectively manage these funds and the readiness of grassroots communities to collaborate with their councils to ensure these resources are optimally utilized for development, as this financial autonomy takes effect.

The group, while commending the federal government’s action to give teeth to the decision of the apex court, however highlights that many Local Government Councils are unaccustomed to managing significant funds independently, noting that to avoid inefficiencies and misuse of resources, “it is essential to establish synergy between council leaders and the people.”

The group in a statement signed by its Chairman, Isaac Abrak urged Local Government Chairmen to organize town hall meetings and engage their communities to identify priority projects that meet the most pressing local needs; ensure transparency and accountability by providing regular updates on the utilization of funds to foster trust and collaboration with their constituents.

It also advised that citizens at the grassroots should form forums, collaborating with their councils to monitor allocations and expenditure; hold local governments accountable by demanding transparency and ensure resources are effectively used for community development.

NCYP also called on civil society organisations and advocacy groups to step in by organizing sensitization programmes and town hall meetings to educate citizens on their role in holding local governments accountable.

It urged financial regulatory bodies such as the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to establish dedicated units to monitor fund utilization and prosecute offenders, noting that the National Orientation Agency (NOA) also has a critical role in reorienting Local Government Councils and grassroots communities on the importance of these funds for grassroots and national development.

Abrak said: “While we commend President Bola Tinubu’s administration and the committee led by the Secretary to the Government of the Federation, Chief George Akume, for their dedication to implementing the Supreme Court judgment, we call for periodic training workshops focusing on budgeting and the use of modern IT tools. It is imperative to emphasize to Council Chairmen the importance of publicly disclosing their budgets, as this will not only enhance effective governance and accountability at the grassroots but also protect them from false accusations or political blackmail.

“We also commend the state governors for their support of Local Government autonomy and emphasize that the essence of this autonomy is to drive grassroots development and not to impose a burden on them. However, it is crucial for Local Government Chairmen to exercise prudence and resist mismanagement of funds. Reports of chairmen appointing excessive aides, such as over 100 in some cases, raise concerns about frugality and the proper use of resources.”

The group stressed that the Local Government Councils, being the closest tier of government to the people, have immense potential to drive development, noting that: “The success of Counties (America’s version of our LGAs) in the United States as powerful entities with efficient systems, including education, can serve as a model for Nigerian LGAs.”

It also said: “As a critical pillar of the fourth estate, organized media plays a vital role in ensuring that funds sent directly to Local Government Councils are utilized judiciously. Media organizations should establish dedicated desks to consistently report on the progress made by Local Government Councils and shed light on their challenges. By doing so, the media can facilitate continuous dialogue among the related organs of the Federal Government, LGAs, and citizens, driving the formulation of effective solutions and fostering sustainable development at the grassroots.

“Finally, we emphasize that empowering the grassroots is fundamental to achieving national development. The success of this initiative will strengthen the bond between citizens and the government, fostering a deeper sense of nationalism, patriotism, and the core values needed for Nigeria to realize its potential as a leading force in Africa and on the global stage. This progress will undoubtedly have a positive ripple effect across the continent.”

Group Commends Move to Transfer Allocated Fund Directly to Local Governments