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In what appears to be a departure from the Supreme Court judgment ceding financial autonomy to local government, unions at the third tier of government have urged the Federal Government to make workers’ salaries a first-line charge on the Federation Account and paid directly to statutory bodies, including the Local Government Service Commission.
In a memorandum to the Federal Government last week, the unions, under the aegis of the Joint Action Committee of Local Government-based Unions, made up of the Nigeria Union of Local Government Employees (NULGE), the Nigeria Union of Teachers (NUT), and the Nigeria Union of Pensioners, said this was necessary for industrial stability of the local government system.
“For workers’ welfare and industrial harmony, training and capacity building and sustainability of industrial stability in the local government system, payment of [the gross salary of local government workers] should be made a first-line charge and domiciled in the relevant agencies,” the unions said in the memorandum signed by Titus Amba, NUT president; Ambali Akeem, NULGE president; and Godwin Abumisi, NUP president.
On 11 July 2024, the Supreme Court ruled that it was unconstitutional for governors to hold funds allocated to the LGs, saying the councils should determine how to maintain and utilise their funds.
Following the judgment, the federal government expressed its commitment to its implementation. It set up a 10-man committee under the Secretary to the Government of the Federation, Senator George Akume, to work out the modalities for enforcing the judgment.
The committee also set up a subcommittee headed by the Minister of Budget and Economic Planning, Senator Abubakar Bagudu, to work with stakeholders on the technical details of the enforcement.
However, despite the general sentiments in favour of the apex court judgment, there are concerns about the capacity of the local councils to discharge the responsibilities bestowed on them efficiently.
The unions amplified this fear in their memorandum last week, urging the federal government to pay their salary, training and pension funds to the Local Government Service Commission.
“Gross Salary of Local Government Workers should be domiciled with the Local Government Service Commission,” they said, adding, “2 percent of total LG allocation for Local Government Commission running grants and Local Government Training should be domiciled with the Commission.”
They said the gross salary of primary school teachers and 1.5 percent of the total LGA allocation for running the State Universal Basic Education Board should be domiciled with the Board.
The unions also requested that 25 percent of the gross salary of teachers and local government workers be deducted from the LG allocation to pay pension and gratuity and be domiciled with the Local Government Staff Pension Board.
Finally, the workers’ unions urged the federal government to pay the 5 percent statutory grant for traditional rulers to the traditional councils’ account. To secure their preferred fiscal allocation model, the unions urged the federal government to restructure all the supervisory institutions controlling and supervising local government workers by expanding their governing board to include the workers’ and council chairman’s representatives. The institutions include NULGE, SUBEB, Local Government Staff Pension Board, and Primary Health Care Agency.
The JAC pushed for a renewed drive for transparent and prudent management of resources at the council level. “We recommend the enforcement of procurement policy in all local governments; enforcement of NFIU guidelines; creation of Audit Department; and appointment of the Auditor-General for the LG from chartered accountants in the LG,” it said.
