By Mohammed Bello Doka
The Federal Government has announced a crucial step towards achieving full autonomy for Local Governments (LGs) across Nigeria, following the Supreme Court's interpretation of the legal framework governing LG autonomy. This pivotal move marks a significant transition in the management and operational structure of the 774 Local Government Areas (LGAs) nationwide.
At present, LG accounts are not integrated with the Federal Government’s Treasury Single Account (TSA), contrary to the mandated guidelines. However, this will soon change as the Federal Government is set to issue directives requiring all LGAs to open or link their accounts to the TSA within a 90-day period. This initiative aims to ensure that LGA accounts are distinctly separated from the financial accounts of their respective state governments.
During this transitional phase, state governments will maintain oversight over the financial operations and expenditures of the LGA councils. This oversight will continue until all the stipulated conditions for full LG autonomy are met, reinforcing the LGAs' designation as the third tier of government in Nigeria’s federal structure.
In states where Council Chairmen are yet to be elected—currently numbering 21—the financial allocations meant for LGAs will still be directed to the state accounts. These funds, however, will be managed by the Heads of Local Government Administrations (HLGAs) and Treasurers, who will operate under the guidance of existing Caretaker Committee Chairmen for the stipulated 90-day period. This arrangement ensures that local government employees continue to receive their salaries and benefits without interruption, even as state governments work towards conducting local government elections.
This landmark decision underscores the Federal Government's commitment to enhancing local governance and ensuring that LGAs are empowered to function independently and efficiently. The successful implementation of this policy will not only redefine the financial landscape of local governance but also strengthen the overall democratic framework within Nigeria.
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