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FG Explains Why CBN Hasn’t Released Funds To LGAs Despite Supreme Court Order

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FG Explains Why CBN Hasn’t Released Funds To LGAs Despite Supreme Court Order

FG explains why CBN hasn’t released funds to LGAs despite supreme court order. The Federal Government has shed light on why the Central Bank of Nigeria (CBN) has not yet begun the direct disbursement of funds to the country’s 774 Local Government Areas (LGAs), despite a Supreme Court ruling granting them fiscal autonomy.

Speaking at a national discourse on strengthening local government autonomy organized by the Nigerian Bar Association (NBA), the Attorney-General of the Federation (AGF) and Minister of Justice, Lateef Fagbemi (SAN), alongside CBN’s Director of Legal, Kofo Salam-Alade, stated that certain crucial modalities were still being put in place to facilitate direct payments from the federation account to the LGAs.

Key Challenges Delaying Fund Release

According to the AGF, a committee comprising representatives from the Federal Government, the Association of Local Governments of Nigeria (ALGON), and the Nigerian Governors Forum (NGF) was formed after the Supreme Court’s landmark judgment on July 11, 2024. This committee is tasked with developing a practical framework for implementing direct allocation payments.

One major hurdle is the process of profiling individuals who will serve as signatories to the LGAs’ accounts. The CBN’s Legal Director, Salam-Alade, explained that the apex bank has no direct banking relationship with LGAs and is currently verifying signatories to ensure transparency and accountability.

“This is a standard procedure under the Know Your Customer (KYC) regulation. Without proper documentation and due diligence, no account can be operationalized,” he stated, urging LGA representatives to complete their paperwork with the CBN.

Governors Accused of Defying Supreme Court Order

Despite the Supreme Court’s ruling prohibiting state governors from unlawfully dissolving democratically elected local government councils, the AGF expressed concern that some states continue to flout this directive. He described this practice as unconstitutional and warned of potential consequences.

“This act amounts to treason and must be treated as such. While governors enjoy immunity under Section 308 of the Constitution, continued disobedience to the Supreme Court’s ruling will have unpleasant repercussions for the state as a whole,” Fagbemi warned.

ALGON Responds

However, ALGON representative Sam Akala countered the CBN’s claims, stating that he was unaware of any official communication regarding the account-opening process for LGAs. Nonetheless, he affirmed ALGON’s readiness to support local governments in ensuring that development reaches the grassroots.

Calls for Full Implementation of Autonomy

NBA President Mazi Afam Osigwe (SAN) emphasized the importance of true democracy at the local government level, stating that ensuring LGAs have financial independence is crucial for stability and development.

“There must be democracy at the local government level. If we fail to get it right there, we may be setting the stage for a bigger crisis,” Osigwe warned.

CBN

CBN

The discourse, attended by top government officials and legal experts, underscored the need for a transparent and accountable system that allows LGAs to function independently and effectively serve the people.

What are your thoughts on this issue? Should state governments be held accountable for violating local government autonomy? Share your opinions in the comments!

Economy

Jigawa Government, Azman University Partner To Enhance Education Development

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Jigawa Government, Azman University Partner To Enhance Education Development

Jigawa government, Azman University partner to enhance education development. Ms Muhktar said, “I assure you that the Jigawa State government will continue to be a valued partner.’’

The Jigawa State government said it will partner with the Azman University to enhance educational opportunities and promote human capital development.

Governor Umar Namadi stated this during a courtesy visit by the Vice-Chancellor, Fatima-Batool Mukhtar, on Thursday in Dutse.

She said the state government would explore areas of collaboration to support innovative learning and sponsor students in specialised programmes to enhance skill development.

The governor said the partnership also focused on computing, data science, aviation management and artificial intelligence (AI).

“I assure you that the Jigawa State government will continue to be a valued partner,” she said.
Mr Namadi highlighted the relevance of the specialised programmes being offered by the university and reaffirmed his commitment to explore opportunities for indigent students.

He said that the introduction of innovative online courses was designed to attract students and scholars to the university.

Earlier, Ms Mukhtar said the institution was committed to quality education, innovation and excellence.

She said the university introduced online learning services, a compulsory e-learning week and the Students’ Consultative Forum, to encourage students engagement in decision-making.

“We have online services that allow students to attend lectures from home, while lecturers can also teach from their homes.

For the students and staff to be familiar with this, we have set aside one week every semester for compulsory e-learning week,” she said.

She also called for more collaboration in computer programming with notable industry players such as Cisco, Huawei and Oracle Academy.

Jigawa

Jigawa

“Your Excellency, Azman University is already gaining strength in computing programmes, and already we have registration with Cisco, Huawei and Oracle Academy. We are certified instructors for Huawei.

“So, we would like to appeal to your excellency to partner with us in your community development projects and skills development for youth for certified courses in computing programmes,” Ms Muktar said.

The VC commended the state government over the 32 per cent budgetary allocation to the education sector and the N3 billion grant to the scholarship board in the 2025 fiscal year.

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Economy

House Of Reps Approve Tax Reform Bills 

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House Of Reps Approve Tax Reform Bills

House Of Reps approve tax reform bills. Mr Faleke said, “These bills underwent three full days of public hearings, with input from over 80 key stakeholders.’’

The Chairman of the House of Representatives Committee on Finance, James Faleke (APC-Lagos), has assured Nigerians that the tax reform bills will produce widely acceptable laws.

Mr Faleke gave this assurance on Thursday after the House considered and adopted the report on the four tax reform bills during its session in Abuja.

The bills include the Nigerian Tax Bill, the Tax Administration Bill, the Revenue Tax Board Bill, and the Nigerian Revenue Service Establishment Bill.

He said, “These bills underwent three full days of public hearings, with input from over 80 key stakeholders. Afterward, we held an eight-day retreat to debate each clause. I am glad that House members recognised our thorough work and approved all our recommendations.’’

He expressed appreciation to fellow lawmakers and Nigerians who engaged with the bills, assuring that the resulting laws will be acceptable to all.

Mr Faleke also thanked the House leadership for entrusting his committee with processing the tax bills and presenting them for consideration.

He commended President Bola Tinubu for prioritising tax law reforms, noting that some existing tax laws date as far back as 1959.

“We cannot continue using outdated tax laws that no longer meet our business, survival, and revenue needs,” he stressed.

Deputy Committee Chairman, Saidu Abdullahi (APC-Niger), said no bill in the 10th Assembly had generated as much debate as the tax reform bills.

He praised Speaker Tajudeen Abbas for fostering consensus among stakeholders, ensuring broad-based input into the legislative process.
Mr Abdullahi highlighted that representatives from geopolitical zones and regional thought leaders were involved, easing public concerns.

He stated, “The committee’s recommendations reflect the contributions of various stakeholders. These were never seen as perfect documents. The executive made proposals, and the public hearing allowed Nigerians to refine them. Lawmakers have now endorsed the final version.’’

Also, Ikeagwuonu Ugochinyere (PDP-Imo) described the process as transparent, with consultants and the executive making adjustments to reflect public interest.

Tax

Tax

Mr Ugochinyere said, “In spite of being in the opposition, we are proud of this historic moment. It will expand the tax net and increase government revenue. This reform will enhance tax collection efficiency while protecting small businesses. That is why we worked together to ensure its passage.’’

On his part, Benson Babajimi (APC-Lagos) said stakeholder concerns, including inheritance tax, derivation, and VAT, were carefully considered.

He said, “This is a great day for Nigeria. The necessary reforms have been approved by the House, and we now await Senate concurrence.’’

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Economy

Tinubu Welcomes Brazilian Delegation For Bilateral Talks

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Tinubu

Tinubu Welcomes Brazilian Delegation For Bilateral Talks

Tinubu welcomes Brazilian delegation for Bilateral talks. A Brazilian delegation led by Minister of Foreign Affairs Mauro Viera visited Abuja to strengthen cooperation between Nigeria and Brazil.

The visit included delivering an official invitation from Brazilian President Luiz Inácio Lula da Silva for President Bola Tinubu to visit Brazil soon.

Discussions focused on trade, investment, and cultural collaboration, with both nations signing agreements to enhance bilateral relations.

Viera praised Tinubu’s participation in the G-20 summit in Brazil last November and emphasized the need for deeper ties in culture, economics, and education.

Tinubu

Tinubu

Nigeria’s Minister of Foreign Affairs, Ambassador Tuggar, highlighted Brazil’s historic support, recalling its participation in Nigeria’s independence celebrations, underscoring the long-standing relationship between both countries.

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