How Governors, LG Chairmen Forge Secret Deals to Circumvent Financial Autonomy Order

In a bid to retain control over local government (LG) funds, some state governors have allegedly entered into secret agreements with LG chairmen, effectively bypassing a Supreme Court order granting financial autonomy to local councils.

Following the court’s July 11 ruling, which directed the Accountant-General of the Federation to pay allocations directly into the accounts of Nigeria’s 774 local governments, reports have surfaced of governors using oaths and informal agreements to continue receiving portions of these funds.

According to findings by Sunday Punch, governors in various states have resorted to compelling elected LG chairmen to pledge allegiance, ensuring that state governments retain control over council finances, despite the court’s decision. One South-West LG chairman, speaking anonymously, revealed that he and his colleagues had been pressured to pledge their loyalty to the governor, promising to remit funds despite the court ruling.

“We met with the governor after the Supreme Court judgment and pledged to follow his directives concerning the funds,” the chairman disclosed. “It wasn’t voluntary, and without that allegiance, I doubt I would have been allowed to contest the election.”

These revelations come as the Federal Government prepares to implement the court’s decision, with a report from an inter-ministerial committee headed by the Secretary to the Government of the Federation, George Akume, expected to be submitted on October 14. Direct payments to local governments are scheduled to commence by the end of October, according to Ambali Olatunji, President of the National Union of Local Government Employees.

Despite this, some local government candidates have confessed to taking oaths to follow the governor’s directives on council funds, viewing the arrangement as part of their political duty. In one southern state, candidates were allegedly made to swear loyalty to the governor before being cleared to run in LG elections.

In contrast, some voices have spoken against this practice. Wale Adedayo, a former chairman of Ijebu East LGA in Ogun State, who was removed from office for accusing the state governor of diverting LG funds, urged chairmen to resist any attempts by governors to control their allocations. He also called on the Federal Government to set up monitoring mechanisms to ensure LG financial autonomy.

Adedayo further warned of attempts by governors to weaken anti-corruption bodies like the Economic and Financial Crimes Commission (EFCC), claiming that state governments seek to shield themselves from accountability.

Political analysts have voiced concern over the situation. Abdul AbdulKareem, a commentator from Sokoto State, noted that local government chairmen remain heavily influenced by governors and are unlikely to act independently due to the nature of their appointments.

In a similar vein, Babatunde Emilola-Gazal, the former chairman of the Ogun State chapter of the Association of Local Government of Nigeria (ALGON), called for a review of the national revenue-sharing formula, which he said unfairly favors the federal and state governments. He argued that even with financial autonomy, local governments will struggle to fulfill their mandates with the current revenue structure.

Meanwhile, ALGON’s Secretary-General, Mohammed Abubakar, confirmed that the association is aware of the situation and is working to counteract attempts by governors to undermine LG autonomy. He revealed that some governors are trying to divide the association, but assured that the board of trustees is actively pushing for the implementation of the Supreme Court ruling.