It is beyond argument that many state governments are misappropriating funds meant for local governments (LGs) in Nigeria. This is in spite of the 1976 local government reform which established the structure, functions and financing of local governments. The office of the chairman and that of the councillors, for instance, are supposed to be elected and made full-time with fixed monetary allowances. A statutory percentage share of the Federation Account is also supposed to go to the local governments. The reform was meant to ensure the independence of local governments from state governments.
On the contrary, state governments have taken over the control of local government administration in the country. They run joint accounts with the LGs in which federal allocations to the LGs are deposited. State governments control these funds and only release what they wish to the LGs.
Recently, the Senate frowned upon this practice. It regretted that “local governments are dead in Nigeria. Governors misappropriate local governments’ funds. They force these local government chairmen to sign off cheques and they give them meagre amounts as running costs. There are some governors who are different and we thank them for doing that.”
The upper chamber called on President Bola Tinubu to stop allocating funds to caretaker committee-led LGs. It also asked the President to convene a national dialogue involving governors, state legislators, local government officials, civil society organisations and community leaders to discuss the roadmap towards achieving full local government autonomy. It further urged “federal agencies to fully comply with the existing legal provisions that empower local governments, ensuring timely release of allocated funds directly to their bank accounts, and streamlining administrative processes.”
It is unfortunate that in most states, elections don’t even take place in the local government areas (LGAs). These states operate caretaker committees in these LGAs, as governors appoint and use the caretaker committee chairmen as they wish. Even when elections take place, it is usually a charade. Senator Ifeanyi Ubah, who represents Anambra South in the Senate, recently lamented the non-conduct of LG elections in Anambra State in the last 18 years. The incumbent governor, Prof. Chukwuma Soludo, promised to conduct LG elections. So far, he is yet to do so.
It is heartening that the Federal Government appears to have woken up to its responsibilities. A few days ago, it sued the 36 governors at the Supreme Court, seeking the enforcement of full autonomy for the LGs. It noted that all efforts to make the governors comply with the provisions of the 1999 Constitution by putting in place, a democratically elected local government system, have not yielded any fruit.
In the suit, instituted by the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, the government urged the court to issue an order stopping governors from embarking on unilateral, arbitrary and unlawful dissolution of democratically elected local government leaders. It also wants the Supreme Court to make an order that funds meant for the LGs from the Federation Account should be channelled directly to them in line with the provisions of the constitution instead of the current practice of paying into the joint accounts created by the governors. It prayed the court to stop the governors from constituting caretaker committees for the LGs which is against the democratic system recognized and guaranteed by the constitution.
The administration of former President Muhammadu Buhari had made moves to abolish the state/LG joint accounts and ensure that LGs directly receive funds meant for them in the Federation Account. The Nigerian Financial Intelligence Unit (NFIU) made the moves then on behalf of the government. But the state governments vehemently opposed it. Incidentally, the current Attorney General of the Federation, Lateef Fagbemi, was their counsel. The argument of the governors was that the NFIU, which is a federal government body, lacked the power (under a federal system of government) to dictate to state governments how to use their funds.
Ironically, the same state governments dictate to the LGs how to use their money. The Constitution recognises three tiers of government in Nigeria – federal, state and local governments. In the third tier, the constitution recognises 774 local government areas. This tier of government should be given the respect it deserves. State governments should stop interfering in their affairs.
LGs are closer to the people. There are things they do that state governments cannot do. They construct local roads, culverts, drainage systems, schools, health care centres, markets and many others. Today, many of the recognised LGAs face decaying infrastructure, widespread unemployment, insecurity, rural-urban migration and many other problems because of lack of funds.
It is high time the LGs were freed from the apron strings of the state governments. A comprehensive reform of the LG system is desirable this time. The starting point is to restore their autonomy.

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