The National Union of Local Government Employees (NULGE) has strongly cautioned the Central Bank of Nigeria (CBN) against allegedly aiding state governors in undermining the financial autonomy of local government councils across the country. The union has expressed deep concerns over the perceived attempts to hinder the Supreme Court’s ruling that mandates direct financial allocations to local government councils.
This warning comes amid reports that the apex bank has refused to open accounts for local government councils, allegedly citing their failure to comply with auditing requirements. The development has raised alarm among local government officials and employees, who see it as a deliberate strategy to stall the full implementation of financial independence for local councils.
Speaking in an exclusive interview with Punch, NULGE National President Hakeem Ambali refuted the claims that local government councils had failed to submit two years’ worth of audited accounts. He insisted that no local government in the country lacks at least three years of audited financial records, as they are required by law to maintain transparent financial reports.
Ambali further emphasized that local governments are fully prepared to present their audited accounts as needed, ensuring compliance with all necessary financial requirements. He maintained that local government councils are eager to facilitate the smooth opening of their accounts with the CBN, as mandated by the Supreme Court judgment, which stipulates that the Federation Account Allocation Committee (FAAC) must remit funds directly to local governments.
“There is no local government without at least three years of audited accounts. This is made possible due to the presence of the Auditors-General at the local government levels,” Ambali stated.
He urged the Central Bank of Nigeria to respect the Supreme Court’s ruling and not allow itself to be manipulated by state governors who oppose local government autonomy. Ambali stressed that any actions taken to delay or obstruct the implementation of direct financial allocation to local governments would be considered a violation of a landmark judicial decision.
“The CBN must understand that it cannot go against a landmark Supreme Court judgment. No organisation should allow itself to be used by governors against the realisation of the autonomy for Local Governments,” Ambali warned.
Furthermore, the NULGE president called on the Central Bank of Nigeria (CBN) to issue a clear directive outlining the necessary requirements for opening accounts for local government councils. He emphasized that local governments are willing to comply with any financial documentation requirements once they are formally communicated by the apex bank.
“Once the CBN provides a memo specifying their needs, local governments will promptly comply,” he assured.
This caution from NULGE follows growing concerns that local governments are experiencing significant difficulties in accessing their statutory allocations due to the CBN’s alleged refusal to open accounts for them. By citing non-compliance with auditing requirements, the apex bank has reportedly restricted local councils’ access to crucial funds necessary for grassroots development and governance.
Amid widespread fears that the CBN’s stance could hinder the full implementation of the Supreme Court ruling, NULGE has urged the apex bank to resist any efforts by state governors to interfere with the financial autonomy of local governments. The union reiterated its commitment to ensuring that local councils receive their rightful allocations without any undue interference or bureaucratic roadblocks.