Nigeria's local government system underwent a significant transformation with the 1976 reforms, which sought to decentralise governance and enhance grassroots development. These reforms led to the creation of Local Government Areas (LGAs) across the country, formally recognising the local government as the third tier of governance. To sustain their operations, LGAs began receiving a statutory allocation from the federal account. New leadership structures, including chairpersons and supervisory councillors, were introduced to oversee local administration, while traditional rulers were repositioned as advisory figures, maintaining influence but without direct political roles.
However, many local governments have fallen short of achieving their mandates, failing to provide critical services adequately. One recurring argument is that the political intervention by governors and state officials in Nigeria, negatively stifles the operability of local governments. Between 1999 and 2002, local councils received their allocations directly from the Joint Federal Allocation Account Committee (FAAC) of the Central Bank of Nigeria (CBN). Later, the Joint Allocation Account Committee (JAAC) was established to manage projects that state and local governments could jointly finance. Direct allocation to LGAs was discontinued, with governors having unrestricted access to local council funds.
Many governors halted local council elections, an essential democratic marker. They appointed caretaker chairpersons to oversee local government administration while depriving them of access to local government funds. Consequently, many local government systems are on the brink of collapse. Essential services like healthcare, education, and infrastructure are either sparse or non-existent. In some locations, terrorists and criminal groups have taken advantage of the governing vacuum, escalating insecurity. Beyond this impasse, the constitution's devolution of local government's regulatory authority to states was ambiguous and confusing.
The Push for Greater Autonomy
On July 11, 2024, the Supreme Court of Nigeria granted financial autonomy to the 774 local councils, recognising them as the third tier of Nigeria's governance architecture. The ruling emphasised that governors lacked the authority to dissolve local government councils and that creating caretaker committees or interim councils would halt funding from the federation account.
Notably, all levels of government rely on the federation account to fund development initiatives. Section 165 of the 1999 Constitution and the Allocation of Revenue Act of 1982 require that federally collected revenue be credited to the federation account and distributed monthly among the three levels of government. This ruling, among other efforts, was followed by the inauguration of a 10-man inter-ministerial committee to ensure the federal government's enforcement of local government autonomy.
Has the Ruling Changed Anything?
The Supreme Court order, which gave states a three-month deadline to organise elections or risk losing federal subsidies for their local councils, prompted many states to schedule elections swiftly. Many state governments sprang into action to hold elections. Notably, local government elections are regulated by the electoral law of respective states, except the Federal Capital Territory. Yet recent local government elections across the states may have shattered hopes for the meaningful change anticipated by the ruling. Several states have held local government elections, with observers and commentators noting that the results typically follow a pattern in which ruling parties win nearly every council seat.
Beyond their dismay at the judgement, some governors have continued to devise strategies to circumvent it. These attempts include introducing state legislative bills forcing council chairpersons to repay their federal allocation to the state. For example, a clause of the Anambra State Local Government Law 2024 requires that federal government allocations to local governments be placed first in the state's joint local government account. The fact that the state government will decide the fund disbursement violates the recent Supreme Court decision.
Direct disbursement to local government has remained a challenge. The commencement date, initially set for October 2024, was changed to January 2025 following an agreement with governors, prompting impacted governors to conduct council elections hastily. In January 2025, the Central Bank of Nigeria (CBN) failed to pay LGA accounts directly. Instead, they diverted LGA monies totalling ₦361.754 billion from the total ₦1.424 trillion distributable revenue through state governments. The CBN stated that LGA authorities will present a two-year audited account before becoming eligible for direct payment. This requirement creates a loophole for governors to interfere, manipulate and stifle local government financial autonomy. The disbursement challenge has remained contentious, defying the Supreme Court's three-month deadline and creating a fresh channel for protracted delays.
Autonomy is No Magic Wand for Development
History is replete with corrupt activities perpetrated by local government officials who have mismanaged and embezzled resources. Local government chairpersons played notable roles in national politics during the Obasanjo administration. Local governments received direct allocations, and officials lavished these funds, including buying 1,000 SUVs for law enforcement agencies and federal bodies. Regional governance and accountability declined as powerful chairpersons prioritised personal interests over local governance while misusing public funds.
As legislature members, LGA councillors are responsible for checking LGA executives. However, they fail in this capacity due to a lack of understanding of their core functions, leading to role confusion and ineffective service delivery. This situation has resulted in low levels of popular confidence and trust. According to an Afrobarometer survey, many people have limited trust in elected local government bodies. About 41.9% say they don't trust them, while 36.6% have little trust. Another 16.6% expressed some confidence, and just 6.4% said they trusted them a lot. These numbers reflect a broader distrust in local governments.
Figure 2: Citizens Confidence-Level in Local Government Councils
Source: Afrobarometer Survey, 2023
Rethinking the Playbook
The federal government should establish a practical monitoring framework to ensure direct allocations to LGAs are disbursed without interference from state governments. The Inter-Ministerial Committee, led by the Secretary to the Government of the Federation (SGF), must employ mechanisms to enforce the ruling. For example, the committee can liaise with agencies like the Central Bank of Nigeria to find alternatives that eliminate bureaucratic loopholes, like the two-year audit requirement, which delays direct payments. The committee should establish contact with the newly elected council authorities to understand their unique challenges for effective federal policy coordination and support.
Governance-focused civil society organisations and relevant stakeholders should engage with local governments to advocate for implementing the ruling on financial autonomy and initiate capacity-building initiatives to enhance their effectiveness. These measures will include:
- Strengthening local government legislative councils by providing tailor-specific training and support to improve oversight and curb mismanagement.
- Increase awareness of civic participation by institutionalising town hall meetings where citizens can track LGA projects and expenditures.
- Expand public education initiatives on local government responsibilities to enhance grassroots accountability.
- Develop mechanisms to prevent corruption at the local government level.
The National Assembly should study and repeal constitutional restrictions on LGA jurisdiction to create total administrative and regulatory independence from state governments. State authorities that meddle with LGA administration should face more serious legal consequences.
References
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