Local government chairmen in Ondo State have cried out over alleged diversion and control of their monthly allocations by the state government, despite the Supreme Court’s landmark July 2024 ruling granting financial autonomy to local governments.
The 18 elected council bosses said they still lack direct access to their funds, as allocations from the Federation Account Allocation Committee (FAAC) continue to be routed through the controversial state-local government joint accounts instead of council treasuries.
A council chairman, who spoke to Roving Reporters on condition of anonymity, alleged that councils are left with a paltry ₦4 million monthly to run their affairs, regardless of the billions disbursed to the state on their behalf.
One of the chairmen noted, for instance, that during the last FAAC meeting in June, some local governments received ₦644 million, ₦590 million, and ₦405 million.
He added that it can be verified on BudgIT, yet after deductions and directives, they were left with just ₦4 million to run their councils.
The situation has heightened tension among grassroots leaders who insist the practice undermines local governance, service delivery, and the spirit of the Supreme Court’s ruling.
“For instance, in the last FAAC for June, some local governments received ₦644 million, ₦590 million, and ₦405 million. You can verify this on BudgIT. Yet, after deductions and directives, we are left with just ₦4 million to run our councils,” he said.
Meanwhile, another chairman explained that the state government, which is led by Governor Lucky Aiyedatiwa, defends its grip on council funds by citing responsibilities such as primary healthcare, basic education, and financing the Amotekun security outfit.
The council bosses, however, voiced frustration, lamenting that six months into their tenure, they have been unable to initiate any meaningful developmental projects due to the financial restrictions.
However, the Association for Good Governance Advocacy (AGGA) has called on President Bola Tinubu to uphold the Supreme Court’s ruling by ensuring direct allocation of funds to local governments.
In a statement signed by its Coordinator, Mrs. Folakemi Benson, AGGA stressed that aside from Lagos, “no other state in Nigeria permits local governments to operate with full financial autonomy,” describing the situation as a major obstacle to grassroots development.
“Local governments are meant to be the closest tier of governance to the people, delivering essential services like roads, healthcare, education, and sanitation. However, without financial autonomy, they remain crippled,” the statement said.
They called on the president to “restrain state governors from mismanaging local council funds” and empower grassroots leaders to fulfill the Renewed Hope Agenda.
Reacting to the allegations, the Ondo State Commissioner for Local Government and Chieftaincy Affairs, Amidu Takuro, dismissed the claims as false and politically motivated.
He maintained that there was no secrecy in the system, insisting that the money was in the councils’ accounts and open for verification.
According to him, all implementations were based on council budget provisions.
On the alleged ₦4 million ceiling for councils, Takuro described the claim as unfounded, stating that he would verify his records but emphasising that such a figure was not accurate.
He explained that statutory deductions from allocations covered salaries of teachers, council workers, and pensioners through agencies such as SUBEB, the Local Government Service Commission, and the Pension Board.
Takuro also highlighted the government’s efforts to clear arrears, disclosing that gratuities from 2010 to 2013 had been settled, totaling about ₦3.8 billion.
He reiterated that the state’s vision was to ensure effective and efficient local government administration, stressing that local governments are closest to the people and must be made responsible and responsive.
He said, “That is not true. Maybe they can come out openly to speak, because there is no secrecy in this system. The money is in their accounts, and anybody can check. Whatever we are implementing is through their budget provision.
“That is not true. That is not true. That is not true. I will check my record, but that claim is unfounded.”
“Our vision is to ensure effective and efficient local government administration in Ondo State. Local governments are the closest to the people, and we are committed to making them responsible and responsive,” the commissioner added.
Supreme Court Ruling
In a landmark ruling delivered on July 11, 2024, the Supreme Court of Nigeria reshaped the financial architecture of grassroots governance by granting full financial autonomy to the country’s 774 local government areas (LGAs).
The judgment came in response to a suit filed by the Federal Government, which challenged the long-standing practice of state governors withholding or diverting funds meant for local councils.
Led by Justice Garba Lawal, the seven-member panel of justices declared that it was unconstitutional for state governments to retain or manage local government allocations.
Justice Emmanuel Agim, who read the lead judgment, emphasised that only democratically elected local councils are entitled to receive funds directly from the Federation Account.
The court condemned the use of caretaker committees, often appointed by governors, as illegitimate and a violation of Section 7 of the 1999 Constitution.
The ruling ordered that henceforth, all local government allocations must be paid directly into the accounts of elected councils, bypassing state governments entirely.
It also barred governors from dissolving elected councils or imposing unelected administrators, stating that such actions amounted to gross misconduct and a breach of constitutional provisions.
This decision was hailed by many as a victory for grassroots democracy and accountability. It aimed to curb the excessive control state governors had wielded over local governments, often stifling development and transparency at the community level. In response, the Federal Government directed the Central Bank of Nigeria to open individual accounts for each LGA to facilitate direct disbursements.
Despite the ruling, implementation has faced resistance. Some state governments have continued to defy the judgment, prompting civil society organisations to launch awareness campaigns and monitoring initiatives to ensure compliance and empower citizens to track local spending.
