Ola Akinwunmi
In a significant move towards enhancing transparency and accountability, the Federal Government has directed the 774 local governments to open dedicated accounts with the Central Bank of Nigeria (CBN) for direct allocation of funds from the Federation Account.
This development follows the Supreme Court’s ruling affirming the autonomy of local governments.According to the Association of Local Governments (ALGON), the opening of these accounts is crucial for the implementation of the Supreme Court’s ruling.
The CBN is awaiting the Federal Government’s directive to open the accounts, which can be done within 24 to 48 hours.The National President, Bello Lawal Yandaki, said the opening of the account is critical to the implementation of the Supreme Court ruling on direct allocations to the councils.To ensure transparency and accountability, the Nigerian Financial Intelligence Unit (NFIU) will monitor the utilization of funds by local government chairmen.
Additionally, a team of anti-corruption agents from the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC) has been constituted to prosecute council chairmen and officials involved in corrupt practices.
The Federal Government’s decision to channel funds directly to local governments aims to prevent illegal diversion of funds by state governors. Local government chairmen will now be held accountable for their financial decisions, and any attempts to transfer funds back to state governors will be closely monitored by anti-corruption agencies.This initiative is expected to strengthen financial transparency and improve service delivery at the grassroots level.
“This is a game-changer. It not only protects local government allocations but also holds chairmen accountable for their financial decisions.”