749 LGA reportedly failed to provide account details for its monthly allocation.
Nigeria News Nalin The Federal Accountant Office has set a major setback in implementing the highest judgment on the autonomous region of the local government council on July 11, 2024.
The two major setbacks were the failure of the LGA to submit account details, according to government agencies, adding that determining democratically elected LGAs is a prerequisite for getting direct payments.
This is included in the Federal Account Allocation Committee Technical Subcommittee Meeting, which was obtained over the weekend.
The meeting was chaired by AGF Oluwatoyin Madein.
Meanwhile, according to sources familiar with the matter, the federal attorney general and attorney general’s office has begun negotiations to resolve the setback.
According to the minutes of the meeting, only 25 of the 774 local government councils’ delta states have submitted their account details for direct payments.
“So far, only local governments in Delta states have provided account details.
“However, consultations with the Federal Attorney General on the way accounts are submitted are still underway,” it said.
In addressing the challenge, Madein said a system will be implemented, but the initial challenge is to determine which local government councils are chairmen of constitutional elections.
She noted that this basic stage is still unclear.
“In addition, for those with proper electoral leadership, there are questions about mechanisms that ensure their direct distribution.
“This is because a lot of complexities need to be addressed,” she said.
Recall that the Central Bank of Nigeria has begun analyzing bank accounts in 774 local government regions of the country as part of the process to start local government autonomy.
It was a necessary condition to ensure financial liability, explained in a notice.
“It’s all about the standard procedures in the form of KYC (know your customers). Anyone who will become a signature of the account must make an introduction.
“This process is underway and we are working with the AGF office. We also write to LGA,” he said.
However, the Nigerian Local Government Association said it had not received communication from the highest banks on opening a bank account.
Algon president and mayor of Abia State University Isuikwuato LGA Chinese Ekeke said CBN has not invited any LG president to sign for verification.
“No, we weren’t invited to sign and verify. I just heard it. I haven’t heard it from any other source.
“Even at Argon Headquarters, I didn’t see any publications; no one informed us,” he said.
This is because the Local Government Employees Federation earlier warned the CBN to help the governor undermine the financial autonomy of the local government council.
Recall that the Supreme Court confirmed the financial autonomy of 774 local government areas of the country on July 11, 2024 and prohibited the governor from further controlling funds for the Council.
The Supreme Court also directed federal accountants to pay the local government allocation directly to their accounts and declared that 36 states have low funds that violate the constitution.
But eight months after the judgment, financial autonomy has not yet taken effect.