By Anietie Akpan
The Association of Local Governments of Nigeria (ALGON) has charged the Attorney General of the Federation (AGF) not to allow the Central Bank of Nigeria (CBN) to take control of money of all the 774 Local Governments (LGs) in the country from the federation account.
The sub-committee of the Secretary to the Government of the Federation’s (SGF) Inter-Ministerial Committee, is said to be considering recommending the use of CBN for LGs accounts for money from the federal allocation.
ALGON Board of Trustees (BoT) in a letter signed by its Secretary General, Mohammed Abubakar and made available to some newsmen, called on the AGF to intervene on the matter and uphold the intention of Section 162(5)(6)(7)(8) of the 1999 Constitution, as amended, ensuring that LGs revenue accounts remain under commercial banks instead of the CBN.
ALGON reiterated commitment “to protecting the financial independence of LGs, urging all stakeholders, including LG Chairmen, financial institutions, and regulatory bodies, to reject any directive that seeks to compromise Local Government funds”.
It noted that only transparent financial practices, free from fraudulent interference, can guarantee the financial autonomy granted to LGs by the Supreme Court in its July 11, 2024, ruling.
ALGON said allowing, “CBN to control these funds would create unnecessary bureaucratic obstacles and expose Local Government allocations to fraudulent garnishee orders by individuals and groups claiming to be creditors of ALGON and Local Governments.
“Should these accounts be forcibly opened with the CBN, it would create an avenue for individuals and groups who claim to be creditors of ALGON and Local Governments to freely exploit and siphon these funds through fraudulent garnishee orders”.
However, ALGON charged the Attorney General of the Federation “to investigate and take decisive action against fraudulent garnishee orders, financial mismanagement, and unconstitutional actions within ALGON”.
ALGON appealed to the Accountant General of the Federation to disregard “erroneous claims and misrepresentations to manipulate financial policies that could undermine Local Government autonomy”.
Accordingly, ALGON called on the Attorney General of the Federation and Minister of Justice to issue a directive ensuring that “Local Governments revenue allocation accounts remain with commercial banks rather than the CBN”.
ALGON called for proper consultations and meetings with relevant stakeholders making sure that any decision affecting local government administration is in tandem with constitutional provisions and it is for the best interest of the people so affected.
CBN has been accused of severally creating unnecessary bureaucracies upsetting the smooth operation of council funds.
