The Federal Ministry of Budget and National Planning has disclosed that state commissioners for Budget and Economic Planning across the country are calling for the development of a unified framework to guide the implementation of local government autonomy in Nigeria.
In a statement issued by the ministry on Tuesday, the commissioners, under the Community of Practice, comprising budget and planning commissioners from all 36 states, acknowledged the recent Supreme Court judgment granting financial and political autonomy to local governments but stressed that autonomy must be structured to be effective.
“Autonomy is not absolute; hence, there is a need for a framework that would work for all the local government areas to make them more effective,” the CoP stated in a communiqué released after their 18th meeting, held in Umuahia, Abia State, from May 6 to 8, 2025.
The statement also read, “The CoP members acknowledged last year’s Supreme Court judgment granting financial and political autonomy to local governments.
“Still, they advised that it should be viewed as an opportunity to design a governance framework that would enable the councils to be more effective in delivering their mandates.”
On July 11, 2024 the Supreme Court ruled that local government allocations should be paid directly to the LG accounts, granting them full financial autonomy, however, implementation has stalled ever since.
The Central Bank of Nigeria reportedly demanded that each council provide two years of audited financial reports before accounts could be opened, a requirement the Association of Local Governments of Nigeria said was not part of the court ruling.
Last month, the challenges facing the implementation of the judgment assumed a new dimension, with some state governors reportedly warning their council chairmen against opening accounts with the Central Bank of Nigeria for the direct payment of their allocations from the Federation Account.
It was learnt that some governors resorted to intimidation and coercion, pressuring their local government chairmen to refrain from opening the designated accounts for direct allocation payment.
The PUNCH reported that ALGON accused the Office of the Attorney General of the Federation of frustrating the implementation of local government autonomy, despite a Supreme Court ruling in favour of direct funding for all 774 local councils.
ALGON Secretary General, Muhammed Abubakar, said the AGF’s directive for the Central Bank of Nigeria to open uniform accounts for all local governments undermines the spirit of the court’s decision.
“The Supreme Court clearly affirmed that local governments are an independent tier of government. Yet, we’re seeing actions from the AGF’s office that contradicts that autonomy,” Abubakar told The PUNCH in Abuja.
Several local government chairmen also told The PUNCH that their respective governors had instructed them not to open accounts with the CBN for the direct receipt of their allocations.
One chairman stated that a governor in the South-East region refused to accept 50 per cent of the monthly allocations, which was part of the agreement, to facilitate the opening of the accounts for direct payment.
“Our governor has threatened us (state chairmen) not to open accounts with the CBN for the direct payment of our allocation,” he said.
The commissioners commended the economic reforms of President Bola Tinubu’s administration, noting that they had led to increased revenue to states and local governments, as well as a reduction in subnational debt.
“We note the significant increase in revenues accruing to states and local governments and debt reduction resulting from the positive impact of the federal government’s economic reforms,” they said.
They urged subnational governments to take advantage of the expanded fiscal space to invest in infrastructure and services that will broaden economic activity and improve productivity, particularly at the grassroots level.
They also encouraged states to adopt a collaborative approach to development by pooling local government resources to ensure that both urban and rural communities benefit from improved services.
The commissioners recommended the establishment of State Joint Economic Planning Boards, in line with the Supreme Court’s directive, to facilitate economic activities and coordinated development at the local level.
They also urged states that already have enabling legislation for such boards to share their frameworks with others and work towards a model law that could guide broader implementation nationwide.
The CoP further expressed support for the federal government’s proposed ward governance system, describing it as a useful tool for planning and service delivery at the lowest administrative level.
They called on state governments to work with the National Bureau of Statistics to adopt data-driven approaches for planning and intervention.
The commissioners also appealed to the Federal Ministry of Budget and Economic Planning to continue capacity-building programmes for state officials, especially in budgeting and planning, to enhance development outcomes.
The meeting was hosted by the Abia State Government in collaboration with the ministry and was attended by 104 participants, including representatives from federal and state MDAs, and development partners. (Punch)
