The Incorporated Trustees of the Association of Local Governments of Nigeria have leveled serious accusations against State Commissioners for Finance, alleging a coordinated effort with governors to obstruct the direct payment of allocations from the Federation Account to the 774 local government councils.
In a letter dated July 30 and addressed to the Chairman of the Forum of State Commissioners for Finance of Nigeria, ALGON, represented by its legal counsel Mike Ozekhome (SAN), has expressed its frustration with the ongoing interference. The letter demands immediate compliance with a Supreme Court order mandating the direct allocation of funds to local councils, bypassing state control.
The Supreme Court had earlier ruled that allocations from the Federation Account to local governments should be made directly, dismissing previous practices that involved joint accounts with state governments. The ruling aimed to reinforce the autonomy of local governments by ensuring that funds meant for them are not diverted or controlled by state authorities.
Despite this landmark decision, ALGON’s letter highlights a series of alleged attempts by the State Finance Commissioners’ Committee to thwart the implementation of the court’s judgment. Ozekhome’s letter accuses the committee of employing various excuses and tactics to undermine the Supreme Court’s directive, nearly three weeks after the ruling was delivered.
Ozekhome criticized the State Commissioners for Finance, stating, “Rather than comply with the clear directives of the apex court’s judgment, your Committee, possibly acting on directives and at the behest of the 36 State Governors, has resorted to various artifices to frustrate this binding judgment.”
ALGON has outlined specific demands in its letter, including immediate crediting of each of the 774 local councils with their respective share of the Federation Account funds. The association has also offered assistance through Dr. Samuel Babatunde, a certified consultant who has prepared a template for the immediate disbursement of funds.
The letter warns that failure to comply with these demands will compel ALGON to initiate contempt proceedings against the State Commissioners and their principals, the State Governors. Ozekhome emphasized that disobedience to court orders is punishable under the law and stressed the urgency of adhering to the Supreme Court’s judgment.
Following the Supreme Court’s verdict, the Federation Accounts Allocation Committee distributed ₦1.354 trillion in June revenue among the Federal Government, states, and local councils. This distribution, conducted on July 25, 2024, was chaired by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy. Edun noted that the actual proceedings of the Supreme Court’s judgment had not yet been handed over to the Attorney-General of the Federation, Lateef Fagbemi, for review and implementation.
Fagbemi has assured that the judgment will be faithfully implemented and has pledged to prosecute any local government officials who tamper with FAAC allocations.
