A brewing showdown is unfolding between the Central Bank of Nigeria (CBN) and the chairmen of the 774 local government areas as the apex bank moves to enforce financial autonomy in line with the Supreme Court’s July 2024 ruling. The ruling stripped state governors of control over local government funds, prompting the CBN to begin profiling the chairmen and signatories of local government accounts.
However, the Association of Local Governments of Nigeria (ALGON) has fired back, claiming it has not received any official communication from the CBN regarding the process. This has raised concerns over transparency and coordination in the implementation of the autonomy directive.
The Attorney General of the Federation (AGF) has reassured stakeholders that full autonomy will take effect once the CBN completes the profiling exercise. Meanwhile, the Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has issued a stern warning to local government chairmen, emphasizing that they have no immunity from prosecution. He vowed that the anti-graft agency would keep a close watch on how the funds are utilized, ensuring they are not siphoned under the guise of newfound financial independence.
As the battle for control over local government funds intensifies, all eyes are on the CBN and ALGON to see how this power struggle plays out in the coming weeks.