Economy
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
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
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!
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
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.
Gov. Fubara Calls For Lasting Peace In Rivers, Reaffirms Commitment to Education
Gov. Fubara calls for lasting peace in Rivers, reaffirms commitment to education. Rivers State Governor, Siminalayi Fubara, has emphasized the need for lasting peace in the state, urging members of the Rivers State House of Assembly to fully comply with the Supreme Court ruling in the interest of stability and development.
Speaking on Thursday during the inauguration of the renovated Okrika Grammar School in Okrika LGA, Fubara reiterated his commitment to peaceful governance, stating, “For me to govern effectively, there must be peace. The Supreme Court has ruled, and we must abide by it.”
He also highlighted the government’s intervention in revamping the school, following a request from the Diocese of Okrika Anglican Communion.
The renovation aligns with his administration’s focus on education, healthcare, and food security.
Rivers State Commissioner for Education, Dr. Ovy Chukwuma, described the project as a testament to Fubara’s dedication to quality education.
The renovations included modern classrooms, hostels, an ICT library, laboratories, an administrative block, perimeter fencing, and improved sports facilities.
Governor Fubara
Fubara assured the Anglican Church that experts would assess erosion threats to the school’s land, ensuring its long-term sustainability.
The event saw praise from the Old Boys Association, community leaders, and religious figures, who commended the governor for restoring the institution’s legacy.
Rivers State Assembly to Investigate Chief Judge Over Alleged Age Falsification
Rivers State Assembly to investigate Chief Judge over alleged age falsification. The Rivers State House of Assembly has initiated an investigation into the state’s Chief Judge, Justice Simeon Amadi, over alleged age falsification.
The move comes amid the ongoing political crisis in the state, involving a power struggle between FCT Minister Nyesom Wike and Governor Similayi Fubara.
On Thursday, the issue was raised during plenary after the House Leader, Hon. Major Jack, presented certain documents to the Speaker, Martin Amaewhule.
The Deputy Speaker, Hon. Dumle Maol, stated: “These documents indicate that Justice Simeon Amadi falsified his age in service. This is a serious allegation, and I hope the House takes legislative notice.”
Rivers State Assembly
Following deliberations, the Assembly resolved to request an investigation by the Department of State Services (DSS).
The motion was put to a vote and approved, directing the DSS to verify the claims and report back to the House.
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