Governors Lobby to Block Enforcement of LG Autonomy as FG Panel Submits Report

As the submission deadline for the report on the implementation of the Supreme Court ruling on Local Government autonomy approaches, state governors have intensified their lobbying to block the enforcement of the verdict.

The 10-member inter-ministerial committee, chaired by the Secretary to the Government of the Federation, George Akume, has completed its assignment and is set to submit its findings by October 13, 2024. This comes as part of the ongoing efforts to implement the court’s ruling on Local Government financial autonomy.

The ruling, issued by the Supreme Court on July 11, 2024, declared that state governors could no longer control or withhold funds allocated to Local Governments. The verdict also mandated the Accountant-General of the Federation to send allocations directly to Local Government accounts, a move designed to end the long-standing practice of states managing LG funds.

The case was initiated by the Federal Government under the administration of former President Muhammadu Buhari, with the Nigerian Financial Intelligence Unit (NFIU) introducing a regulation in 2019 that restricted states from withdrawing more than N500,000 daily from Local Government accounts. The regulation sought to prevent governors from controlling the funds, but was initially opposed by the Nigerian Governors’ Forum, leading to its eventual suspension.

However, the recent Supreme Court ruling reaffirmed Local Government autonomy and ordered states to comply with the constitutionally mandated system of democratically elected councils, further prohibiting the appointment of caretaker committees.

Despite President Bola Tinubu’s recent pledge to uphold the ruling in his Independence Day speech, sources within the Presidency reveal that governors have been mounting pressure on federal officials to soften the implementation of the court’s decision.

The inter-ministerial committee, which includes top officials like Attorney-General of the Federation Lateef Fagbemi, Finance Minister Wale Edun, and Central Bank Governor Olayemi Cardoso, has been tasked with ensuring full autonomy for the 774 Local Governments across Nigeria, without interference from state governments.

The outcome of the committee’s report and the President’s response will determine whether Local Government autonomy is fully realized, amidst continued resistance from the states.