State Governors Make Fresh Moves to Delay Implementation of Local Government Autonomy

State governors are taking new steps to postpone the implementation of local government autonomy, raising concerns over the decentralization of power and its impact on grassroots development.

As the submission of the report from the 10-member inter-ministerial committee on implementing the Supreme Court’s decision regarding Local Government Areas autonomy approaches next week, state governors have initiated renewed lobbying efforts to oppose enforcing this ruling.

According to findings by OBASANJONEWS, the panel led by George Akume, the Secretary to the Government of the Federation, has completed its assignment and is anticipated to submit its report on or before October 13.

During the tenure of former President Muhammadu Buhari, the Nigerian Financial Intelligence Unit implemented a regulation starting on June 1, 2019. This regulation prohibited transactions through State and Local Governments Joint Accounts by directing funds straight to local government accounts. Additionally, it capped cash withdrawals from these local government accounts at N500,000 per day and imposed penalties on banks that did not adhere to this rule.

Nevertheless, state governors, represented by the Nigerian Governors’ Forum, opposed this regulation and ultimately led to the NFIU backing down.

In May, Lateef Fagbemi, the Attorney-General of the Federation and Minister of Justice, filed a lawsuit on behalf of the Federal Government to contest the governors’ power to receive and retain federal allocations designated for Local Government Areas.

The lawsuit aimed to stop state governors from independently disbanding democratically elected local government councils and setting up caretaker committees in their place. The Attorney General of the Federation contended that the constitution required a system of democratically elected local governments and did not permit alternative forms of governance.

On July 11, 2024, the Supreme Court delivered a landmark judgment affirming the financial independence of all 774 local governments in the country. The ruling specified that governors could no longer exercise control over funds designated for these councils.

The Supreme Court panel, consisting of seven members and headed by Justice Garba Lawal, determined that it was both illegal and unconstitutional for governors to control or withhold funds designated for local governments.

The highest court ordered the Accountant-General of the Federation to transfer local government allocations directly into their accounts, stating that withholding these funds by any of the 36 states is unconstitutional.

Additionally, on August 20, the Federal Government established a 10-member inter-ministerial committee to enforce the Supreme Court’s decision regarding local government autonomy.

The committee members comprise Wale Edun, the Minister of Finance and Coordinating Minister for the Economy; Lateef Fagbemi SAN, Attorney General of the Federation and Minister of Justice; Abubakar Bagudu, Minister of Budget and Economic Planning; Oluwatoyin Madein, Accountant-General of the Federation; and Olayemi Cardoso, Governor of the Central Bank of Nigeria.

The group also includes Mrs. Lydia Jafiya, the Permanent Secretary of the Federal Ministry of Finance; Mohammed Shehu, Chairman of the Revenue Mobilization Allocation & Fiscal Commission; and representatives from state governors and local governments.

The main objective of the committee is to guarantee that local governments receive complete autonomy, enabling them to operate efficiently without state government interference.

During his broadcast on Tuesday celebrating Nigeria’s 64th Independence anniversary, President Tinubu vowed that his administration would maintain the financial independence of local governments, as confirmed by the Supreme Court.

The President emphasized their commitment to transforming the political economy by stating that they are determined to enforce the Supreme Court’s decision regarding financial autonomy for local governments.

Three officials, including a source within the Presidency who wished to remain anonymous due to not having authorization to discuss the matter, informed OBASANJONEWS that governors were urging top officials to ease up on enforcing the Supreme Court’s judgment.

However, the official from the Presidency emphasized that the President was dedicated to carrying out the Supreme Court’s ruling.

He mentioned that the process is underway, with governors already lobbying to delay the implementation of the supreme court ruling as the panel gets ready to submit its report next week.

The execution is poised to commence shortly, as the finance and justice ministries are working together to finalize the particulars.

A technical committee was established, chaired by the Secretary to the Government of the Federation. The Supreme Court has mandated that implementation should commence on or before October 11.

“The President’s speech has further reassured us that this is already a settled matter. NULGE has additionally presented its report to the committee, he remarked.

In response to the governors’ attempt to obstruct the enforcement of the Supreme Court’s decision, civil society organizations such as the Centre for Accountability and Open Leadership and United Global Resolve for Peace urged the Federal Government to expedite implementing autonomy.

Debo Adeniran, the Chairman of CACOL, criticized the governors for their “self-serving nature” and their “tight control over local governments.”

He mentioned, “We understand that they were displeased with the President’s decision to request adjudication from the Supreme Court. In fact, they are not just lobbying but actively exerting pressure on all involved parties to prevent the implementation of that order.”

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The lobby is unwarranted and unnecessary, and the President should not permit it to proceed. If the President insists on allowing it, they will ultimately fail because the rule of law must prevail. The Supreme Court has made its decision; it’s simply their responsibility to implement it without obstruction. Any hindrance would jeopardize the rule of law, which is detrimental for us all.

Olaseni Shalom, the Executive Director of UGRP, urged the President to propose legislation in the National Assembly that would ensure autonomy.

Shalom encouraged the governors to assist local governments in achieving fiscal independence.

The legislation explicitly outlines the execution of local government autonomy. However, it’s important to remember that this isn’t a new law; it’s pre-existing and has been brought before the Supreme Court for interpretation,” Shalom explained.

As soon as the Supreme Court provided its interpretation, I anticipated that the Presidency would propose a bill to eliminate any ambiguity and clarify it thoroughly. However, they opted to form a 10-member committee instead.

The period of LG autonomy should also serve as an opportunity for restructuring advocacy, which has been ongoing. This would allow state governments to manage their resources and achieve fiscal independence. The struggle between the state governments and the Presidency over enforcing this law highlights its importance. It’s crucial for both parties to engage in negotiations.

At a recent meeting, Peter Ahmeh, the National Secretary of the Coalition of United Political Parties, urged the Federal Government to act promptly on the issue.

Ahmeh stressed that the Supreme Court’s ruling should have been implemented immediately.

He stated that the court’s judgment impacts the financial independence of local governments but does not affect their administrative autonomy.

Local government’s financial independence is outlined in Section 162 of the Constitution, whereas their administrative autonomy relates to managing elections, like those overseen by the State Independent Electoral Commissions for local governments in Nigeria.

Each state has its own electoral commission, totaling 36 independent commissions at the state level. Additionally, there is one national electoral commission. Therefore, in total, there are 37 independent electoral commissions: one national and 36 at the state level.

I find it perplexing that the Federal Government feels compelled to negotiate with state governments before implementing a valid judgment from a competent authority like the Supreme Court.

The CUPP spokesperson urged the Federal Government to take a strong stance against any attempts by the governors to postpone implementing the ruling on autonomy.

He stated, “There’s no necessity for the Federal Government to set up a committee and declare that they’ll start the process shortly.”

Enacting financial autonomy is crucial and urgent to enable local communities to hold their governments accountable for the funds received in each locality’s account. The prevalent criminality and embezzlement at the local government level stem directly from this lack of independence, presenting significant challenges we currently face within our local governance structure.

The implementation must happen right away and without delay. Any efforts by the governors to obstruct this process should be opposed.