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The federal government Wednesday gave some insights into reasons the Central Bank of Nigeria (CBN) was yet to order release of funds directly to the country’s 774 local government areas despite the order of the Supreme Court.
Attorney-General of the Federation and Minister of Justice Lateef Fagbemi (SAN), and CBN Director of Legal Kofo Salam-Alade gave the explanation in separate presentations at a state-of-the-nation discourse on strengthening local government autonomy in Nigeria, organised by the Nigerian Bar Association (NBA).
They said there were ongoing processes to profile those who would serve as signatories to the accounts of the various LGAs.
At the event were states’ Attorneys General, a retired Justice of the Supreme Court, Ejembi Eko, who was the guest speaker, some heads of key government agencies as well as a couple of senior lawyers from across the country.
…AGF Fagbemi explains
Addressing the gathering, Fagbemi recalled that shortly after the Supreme Court landmark judgement July last year, which granted fiscal autonomy to the LGAs, the federal government put in place an implementation committee.
Represented by the Director of Civil Litigation, Federal Ministry of Justice, Tijjani Gazali (SAN), the AGF said the committee comprised of representatives of the federal government, that of the Association of Local Governments of Nigeria (ALGON) and the Nigerian Governors’ Forum (NGF).
Fagbemi said the committee was tirelessly working to come up with “the most practicable framework for the full implementation of the judgment, especially regarding direct payment of allocations from the Federation account to Local Government councils.
“The committee is expected to complete its mandate any time from now and present its recommendation to Nigerians,” the AGF added, saying President Bola Tinubu determined to emancipate the LGAs as the third tier of government in the country that led his administration to drag the 36 Governors to the Supreme Court.”
He expressed dismay that despite the apex court’s judgment outlawing the illegal removal of democratically elected local government councils, some states still carried on with impunity.
He said it’s disturbing to see, “the unconstitutional connivance by State Governors and their State Houses of Assemblies to wily nilly dismantle democratically elected local government structures without recourse to the rule of law and replace them with their stooges.”
Fagbemi further said: “Let me state in unequivocal terms that this act is tantamount to treason and must be treated as such. While it is true that Section 308 of the Constitution grants the Governor immunity from prosecution, I wish to be clear that this flagrant disobedience to the Supreme Court judgment will have unpleasant consequences for the State as a whole, should it persist.”
…CBN too
Giving further insight, the CBN Director, Legal, Salam-Alade, declared that the highest bank in the land had no banking relationship whatsoever with the LGAs.
Alade said: “This is all about the standard procedure in the form of KYC (Know Your Customer). Anyone who will be a signatory to the account must be profiled.
“The process is ongoing, and we are collaborating with the AGF office. We have also written to the LGAs.
“All that ALGON needs to do is encourage its members to approach the CBN within their locality. Within 48 hours, their problem will be solved.
“We are using this opportunity to call on the 774 men to come forward for their documentation. No account can be operationalized without the prerequisite Customer Due Diligence, CDD.”
…We ‘re not aware of CBN’s claim – ALGON
In what looked like a counter, Sam Akala representing the ALGON at the event, said he was not aware of the CBN’s claim on account opening process.
Akala said: “I cannot confirm that such communication has been received officially,” but assured of ALGON readiness to embrace the challenge of taking development down to the grassroots.
Speaking earlier, President NBA Mazi Afam Osigwe (SAN) said the conversation was to ensure the functionality of the LGAs as government at the grassroots.
Osigwe said: “There must be democracy at the Local Government level. All the other tiers of government must allow the LGs to breathe.
“If we fail to get it right at the LG level, we may be setting a stage for a greater calamity,” Osigwe, SAN, added.
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