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The Nigeria Union of Local Government Employees and the Association of Local Governments of Nigeria (ALGON) have called on the Nigerian Financial Intelligence Unit to monitor council funds and prevent them from being diverted to state governors by council chairmen.
ALGON has also pledged to utilize its financial autonomy to address security challenges and improve infrastructure at the grassroots level, while ensuring that people in rural areas receive more benefits of democracy.
In recent months, there has been a growing demand for local government autonomy in Nigeria, supported by President Bola Tinubu and other stakeholders.
Currently, the federal government receives 52.68% of the country’s monthly revenue, while states receive 26.72% and local governments receive 20.60%, allocated by the Revenue Mobilisation Allocation and Fiscal Commission under the Presidency and disbursed by the Federation Account Allocation Committee.
In May, the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, filed a lawsuit against the 36 state governors on behalf of the Federal Government at the Supreme Court, seeking full autonomy for local governments.
The lawsuit was based on 27 grounds, arguing that Nigeria, as a federation, is governed by the 1999 Constitution.
Subsequently, the Attorneys-General of the 36 states objected to the lawsuit brought by the Federal Government.
However, on July 11, 2024, the Supreme Court ruled that it was unconstitutional for state governors to control funds allocated for local government administrations.
The seven-man panel, led by Justice Emmanuel Agim, declared that the 774 local government councils in the country should manage their funds independently.
The President of NULGE, Akeem Ambali, on Friday expressed support for the Supreme Court’s ruling.
The NULGE leader emphasized the importance of following NFIU guidelines to prevent fund diversion.
Ambali stated that only those who had misused the funds and those against democratic principles would be unhappy with the ruling, as Nigerians are pleased with the Supreme Court's decision.
He expressed satisfaction with the judgment, emphasizing that it demonstrates constitutional democracy in action.
Ambali highlighted the need to stop the illegal diversion and misuse of local government funds, stating that the verdict will positively impact governance at the local level.
He also emphasized that adherence to NFIU guidelines will prevent funds from being diverted to state governors by local government chairmen.
