Governors Resist LG Autonomy, Block Chairmen from Opening CBN Accounts

Efforts to implement the Supreme Court ruling on full financial autonomy for Nigeria’s 774 local government areas are being frustrated by state governors who are reportedly blocking council chairmen from opening accounts with the Central Bank of Nigeria (CBN). Investigations across several states reveal that many governors have issued direct warnings to local government leaders, instructing them not to comply with directives to receive allocations directly from the Federation Account via CBN accounts.

This resistance comes nearly nine months after the Supreme Court granted LGAs autonomy, with the Federal Government setting up a panel to oversee its implementation. The panel directed that each LGA should open an account with the CBN to receive direct allocations. However, the process has faced roadblocks, including reluctance from the apex bank and political interference at the state level.

Multiple council chairmen, who requested anonymity for fear of repercussions, told reporters that they were under pressure from their state governors to abandon the CBN account initiative. One chairman from a South-East state admitted that even after offering to remit 50% of the direct allocation back to the state, the governor still rejected the proposal, insisting no CBN accounts be opened.

A major concern among governors, sources say, is the potential loss of control over local government funds. Traditionally, allocations are funneled through joint accounts managed by state governments, allowing them to determine how much each LGA receives. Direct CBN payments would end that practice.

While Delta State LGAs have reportedly submitted account details, most other states remain stalled. In Nasarawa State, the Nigeria Union of Local Government Employees (NULGE) confirmed that CBN accounts had been opened in anticipation of receiving funds, but no disbursements have occurred. The NULGE chairman there praised the state government’s cooperation but expressed frustration at the lack of actual funding.

In contrast, a council chairman in the state blamed the Federal Government for continuing to channel funds through joint accounts despite LGAs having CBN accounts ready. Similarly, the chairman of NULGE in Kwara State said there’s no evidence any local government in the state has opened a CBN account, and he couldn’t confirm if the governor opposed the initiative.

In several states, bureaucratic hurdles and CBN requirements have further slowed progress. For example, a chairman in the South-West said providing two-month account statements was proving difficult because most LGs lacked access to their own accounts, with state governments managing them instead.

In Yobe State, March salaries for LG workers were still paid through the state ministry, not from LGA-controlled accounts. Staff there have yet to benefit from the new minimum wage, unlike their state counterparts, highlighting the disparities created by delayed autonomy.

Zamfara and Kano LG chairmen confirmed that CBN accounts have yet to be opened, citing lack of formal invitations or guidance from the CBN. Jigawa’s ALGON chairman, however, insisted that the process is underway in the state, with most steps completed except biometric verification.

Despite isolated progress in states like Nasarawa and Jigawa, the broader picture remains one of widespread resistance and administrative inertia. Many chairmen are still unsure of the status of implementation in their states, and there is growing concern that governors are working behind the scenes to undermine the Supreme Court ruling.

While the CBN has initiated some processes, including opening preliminary accounts for all LGAs, its failure to engage directly with local government officials has further complicated the situation. Until full cooperation is achieved between federal, state, and local entities, the goal of true financial autonomy for Nigeria’s local governments remains elusive.