The Federal Government has clarified why the Central Bank of Nigeria (CBN) has yet to begin direct disbursement of funds to the country’s 774 Local Government Areas (LGAs), despite a Supreme Court ruling granting them fiscal autonomy.
Speaking at a discourse on local government autonomy organized by the Nigerian Bar Association (NBA), Attorney-General of the Federation (AGF) and Minister of Justice, Mr. Lateef Fagbemi, SAN, alongside CBN’s Director of Legal, Mr. Kofo Salam-Alade, revealed that the necessary framework for direct allocation is still being developed.
They explained that an implementation committee—comprising representatives from the federal government, the Association of Local Governments of Nigeria (ALGON), and the Nigerian Governors Forum (NGF)—has been working on setting up processes, including verifying authorized signatories for LGA accounts.
Fagbemi emphasized President Bola Tinubu’s commitment to strengthening local government autonomy, noting that the administration took the 36 state governors to court to ensure the LGAs received their due allocations directly. However, he condemned the continued removal of democratically elected local government officials by state governors, warning that such actions could have serious consequences.
Meanwhile, CBN’s Salam-Alade stated that the bank has initiated the Know Your Customer (KYC) process for LGA accounts, urging local government representatives to complete their documentation to enable fund disbursement. However, ALGON representative Sam Akala disputed claims that the CBN had reached out to LGAs regarding account setup, stating that no official communication had been received.
NBA President, Mazi Afam Osigwe, SAN, underscored the importance of local government autonomy, warning that failure to empower LGAs could have dire consequences for grassroots governance.
The event, which featured key government officials and legal experts, aimed to reinforce the push for a more functional and independent local government system in Nigeria.
