The Attorney-General of the Federation (AGF) and Minister of Justice, Lateef Fagbemi, and the Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, at separate events yesterday, weighed in on autonomy for local government areas (LGAs), issuing warnings to state governors and council chairs.
Fagbemi condemned the continued illegal removal of democratically elected local government officials by state governors despite a recent Supreme Court ruling declaring “unequivocally” that the act is “tantamount to treason and must be treated as such,” reports The Guardian.
Speaking at a State of the Nation discourse on strengthening local government autonomy, organised by the Nigerian Bar Association (NBA), Fagbemi warned: “This flagrant disobedience to the Supreme Court judgment will have unpleasant consequences for the state as a whole, should it persist.”
The AGF expressed concern over the collusion between state governors and their respective state assemblies to dismantle elected local government structures, replacing them with handpicked appointees. He lamented that, despite the Supreme Court’s judgment outlawing the illegal removal of local government councils, some states have continued to flagrantly disregard the ruling.
“The unconstitutional connivance between state governors and their state Houses of Assembly to wilfully dismantle democratically elected local government structures, replacing them with their stooges, is deeply troubling,” Fagbemi said.
While acknowledging that Section 308 of the 1999 Constitution grants governors immunity from prosecution, the AGF insisted that the Federal Government would not tolerate such violations of the Supreme Court’s decision.
Fagbemi further noted that local government structures were nearly rendered obsolete until his office took the matter to the Supreme Court, which resulted in a ruling reaffirming the autonomy of local councils.
Some state governors have been at odds with certain local government chairmen. In December last year, the Edo State House of Assembly passed a resolution suspending all chairmen and vice-chairmen of the state’s 18 local government councils for two months. The House also mandated leaders of the legislative arms to take over leadership of their respective councils.
The suspension followed a motion moved by Isibor Adeh, representing Esan North East I, and seconded by Donald Okogbe, representing Akoko-Edo II. The governor, Senator Monday Okpebholo, had written a petition to the House regarding the chairmen’s refusal to submit their local governments’ financial records to the state government.
Fagbemi criticised the Edo State House of Assembly’s actions, stating that it was only the legislative arm of local governments that had the power to sack or suspend council chairmen. He emphasised that local government chairmen cannot be removed or suspended by any governor without due process.
Also, the Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, urged local government chairmen across Nigeria to prioritise accountability, warning them that they do not enjoy immunity from investigation and prosecution for fraud.
Speaking at the Gombe State Local Government Summit in Gombe, Olukoyede stressed the need for prudence in the management of public funds, stating, “Local government chairmen do not have immunity, and we are not going to wait until you finish your tenure to come after you.”
The EFCC boss expressed concern over the stagnation, poverty, and deprivation prevalent in rural areas despite significant resources allocated to them over the years.
“The impact of these resources is not felt by the people living in these areas. Councils, instead of becoming catalysts of growth, have become caricatures existing only in name,” he lamented.
To promote transparency and efficiency, Olukoyede recommended the establishment of compliance units within local government councils to monitor resource management and project execution.
He revealed that the EFCC had created a Fraud Risk Assessment and Control (FRAC) department, whose officers would visit Gombe State councils to oversee the use of enhanced allocations from the Federation Account.
“EFCC will be paying you visits occasionally to monitor how you are using the funds. We will come in the evening. Sometimes you may even be seeing us in your dreams,” he quipped.
Olukoyede added: “Without full expression of the autonomy of the branches of government at the local government level, the chairmen of councils will continue to act as sole administrators with concomitant dangers to due process and accountability. You are not sole administrators but local government chairmen.
“Community leaders, even traditional rulers, it is part of your duties as royal fathers to ensure that you monitor the activities of the local government administration within your domain.
“Civil societies also, we are challenging you to do your work and rise to the occasion. We must all take a greater interest in the resources of the councils that are expended through budget tracking and oversight. Where there is evidence of malfeasance, they also have a responsibility to alert the anti-graft agency for immediate intervention.”
Meanwhile, the federal government has explained why, despite the Supreme Court’s order, the Central Bank of Nigeria (CBN) has not commenced the direct release of funds to the country’s 774 LGAs.
In separate presentations during the discourse on strengthening local government autonomy in Nigeria, the AGF, Lateef Fagbemi, and the CBN’s Director of Legal, Mr Kofo Salam-Alade, maintained that the modalities enabling the various LGAs to draw funds directly from the federation account were not yet in place.
They further disclosed that the necessary bodies are still profiling individuals who would serve as signatories to the accounts of the various LGAs.
The AGF revealed that an implementation committee was set up shortly after the July 11, 2024, landmark Supreme Court judgment granting fiscal autonomy to the LGAs. According to the AGF, whose speech was read by the Director of Civil Litigation, Federal Ministry of Justice, Tijjani Gazali, SAN, the committee comprises representatives of the Federal Government, the Association of Local Governments of Nigeria (ALGON), and the Nigerian Governors Forum (NGF).
He said the committee has been working assiduously to develop “the most practicable framework for the full implementation of the judgment, especially regarding direct payment of allocations from the Federation Account to local government councils.”
“The committee is expected to complete its mandate any time from now and present its recommendation to Nigerians,” the AGF added, noting that President Bola Tinubu is determined to emancipate the LGAs as the third tier of government, which prompted his administration to drag the 36 governors to the Supreme Court.
Also, providing more insight into why the LGAs have yet to receive funds directly from the federation account despite the Supreme Court’s order, the CBN’s Director of Legal, Mr Salam-Alade, said the apex bank has no banking relationship with the LGAs.
He explained that the bank has commenced the process of profiling those who would serve as signatories to the accounts of the respective LGAs to ensure transparency and accountability.
“This is all about the standard procedure in the form of KYC (Know Your Customer). Anyone who will be a signatory to the account must be profiled. The process is ongoing, and we are collaborating with the AGF’s office. We have also written to the LGAs.
“All that ALGON needs to do is encourage its members to approach the CBN within their locality. Within 48 hours, their problem will be solved. We are using this opportunity to call on the 774 men to come forward for their documentation. No account can be operationalised without the prerequisite Customer Due Diligence (CDD),” the CBN Legal Director added.
However, contrary to the CBN’s claim, a representative of ALGON at the event, Sam Akala, said he was not aware that the apex bank had written to any LGA regarding the account-opening process.
“I cannot confirm that such communication has been received officially,” he insisted, even as he expressed ALGON’s readiness to embrace the challenge of taking development down to the grassroots.
This came as a high court in Kano State issued a permanent order restraining the CBN from withholding funds allocated to the 44 LGAs of the state.
The ruling, delivered by Justice Ibrahim Musa-Muhammad, followed an ex parte motion filed on November 1 by the National Union of Local Government Employees (NULGE), Ibrahim Muhammed, and five others. The motion sought to prevent the respondents from withholding or delaying allocations essential for local governance.
The respondents were the Accountant-General of the Federation (AGF), the CBN, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), the 44 Kano LGAs, and several commercial banks, including the United Bank for Africa and Access Bank.
In November, the court issued an interim order preventing the CBN and AGF from withholding funds for the 44 LGAs pending the determination of the suit.
Delivering his final judgment on Monday, Justice Musa-Muhammad ruled in favour of the applicants, affirming that they had established their case.
“The AGF, CBN, and RMAFC are under a duty to disburse monthly allocations to the 44 LGAs as democratically elected local government councils,” the judge declared.
He further emphasised that withholding the allocations would violate the fundamental rights of residents in the 44 local government councils, citing sections of the Nigerian Constitution.
“A declaration that withholding these allocations would amount to a breach of the fundamental rights of the residents and inhabitants in the 44 local government councils, as guaranteed under Sections 33, 42, 43, 44, 45, and 46 of the 1999 Constitution of the Federal Republic of Nigeria (as amended),” the ruling stated.
Justice Musa-Muhammad also referenced the African Charter on Human and Peoples’ Rights, noting that excluding the 44 LGAs from the Federation Account distribution contradicted its provisions.
“It would be wrong according to Articles 13, 19, 22, and 24 of the African Charter on Human and Peoples’ Rights for the AGF, CBN, and RMAFC to exclude the 44 LGAs in the distribution of funds accruing from the Federation Account, in line with Section 162(3) of the 1999 Constitution of the Federal Republic of Nigeria (as amended),” he said.
