The Association of Local Governments of Nigeria (ALGON) has announced plans for the 774 local government councils across the country to open dedicated accounts with the Central Bank of Nigeria (CBN) for the direct disbursement of allocations from the Federation Account.
According to ALGON National President, Bello Lawal Yandaki, this initiative is crucial for implementing the Supreme Court ruling on direct allocation to councils.
Yandaki revealed that the CBN is awaiting the Federal Government’s directive to facilitate the opening of these accounts.
The Nigerian Financial Intelligence Unit (NFIU) is also set to monitor the utilization of these funds to ensure adherence to principles of transparency, accountability, and good governance.
Additionally, a team comprising agents from the Independent Corrupt Practices and other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC) has been constituted to prosecute officials involved in corrupt practices.
Speaking to reporters in Katsina, Yandaki addressed concerns about delays in fund disbursement, attributing them to local councils’ failure to submit necessary bank details to the Federation Accounts and Allocation Committee (FAAC).
He assured that the process of opening the accounts could be completed within 24 to 48 hours once all requirements are met.
“There is a general agreement among stakeholders, including labor unions and local government chairmen, that the direct allocation of federal revenue to local governments will commence this January,” Yandaki stated.
He added that meetings are ongoing to finalize the process.
Despite N361.754 billion allocated to local governments during the January FAAC meeting, the funds remain undistributed due to administrative bottlenecks.
FAAC officials have urged councils to resolve these issues before the month’s end to ensure timely receipt of their allocations.
The Federal Government’s decision to channel funds directly to local governments follows a Supreme Court ruling affirming their autonomy.
However, compliance has faced challenges in some states. For instance, Anambra State’s laws mandate that local government funds pass through a joint state/local government account, raising concerns about adherence to the ruling.
To ensure financial accountability, anti-corruption agencies will monitor council accounts and take action against any illegal diversions.
A source emphasized that local government chairmen must take full responsibility for their financial operations and warned against transferring funds back to state governors. Chairmen found violating these regulations will face strict consequences.
The measures aim to strengthen financial transparency and autonomy at the grassroots level. “This initiative protects local government allocations and holds chairmen accountable for their financial decisions,” the source said, adding that it marks a significant step forward for Nigeria’s democracy.
Sahel Reporters News