By Eve Omayrs
A fresh wave of outrage is sweeping across the country as revelations emerge that the Central Bank of Nigeria (CBN) is actively undermining the constitutional autonomy of local governments by refusing to grant them permission to open operational accounts. This action, labor unions allege, is sabotaging President Bola Ahmed Tinubu’s commitment to grassroots governance, especially in the implementation of the ₦70,000 minimum wage for local government workers and primary school teachers.
The National President of the Nigeria Union of Local Government Employees (NULGE), Comrade Haruna Kankara, made the shocking disclosure during a press briefing, stating that despite the Minimum Wage Act signed into law by President Tinubu nine months ago, local government councils remain financially crippled due to the CBN’s refusal to allow them open direct accounts with commercial banks.
“This is not just bureaucratic delay; this is a calculated move to sabotage local government autonomy. The Constitution is clear about the independence of the third tier of government, yet the CBN is acting as though LGs are mere departments under state governments,” Kankara fumed.
According to NULGE and multiple local government chairmen, the apex bank has continuously demanded state government approvals before allowing LGs to open bank accounts, a practice that flies in the face of the 1999 Constitution and several Supreme Court rulings affirming local government financial independence.
Sources within the Association of Local Governments of Nigeria (ALGON) further confirmed that several LGs that attempted to open accounts in 2024 were told by banks that approval must first come from their respective state finance ministries. This gatekeeping, they argue, allows state governors to hijack LG allocations and divert funds at will.
An anonymous chairman from the North-East lamented, “We receive allocations on paper, but can’t access them. The banks tell us to go and get letters from our state commissioners before we can touch a kobo. How then do we pay workers, implement projects, or function effectively?”
The result has been devastating. In nearly 20 states—among them Yobe, Zamfara, Gombe, Imo, Ebonyi, Cross River, Borno, and the FCT—LG workers and primary school teachers have been excluded from the new ₦70,000 minimum wage. In some states, teachers haven’t even received the old ₦30,000 wage, prompting protests and strikes, particularly in the Federal Capital Territory.
Labor experts argue that this is not just an administrative challenge but a political war being waged against Tinubu’s federal reforms. “How can the CBN, which should be facilitating fiscal independence and transparency, be the very institution enabling oppression of LGs?” asked Dr. Emmanuel Ajayi, a public finance analyst.
Beyond wage issues, the lack of account access has paralyzed capital projects, halted community healthcare funding, and grounded primary education infrastructure across rural areas. Several LGs report that they have been unable to procure desks, repair schools, or pay contractors because funds meant for these purposes remain frozen in state-controlled accounts.
Meanwhile, legal practitioners are urging President Tinubu to issue an executive directive compelling the CBN to comply with the Constitution. They argue that local government autonomy cannot be achieved if fiscal operations remain at the mercy of state governors and bureaucrats.
“This deliberate sabotage must stop,” NULGE President Kankara declared. “The Federal Government must assert itself and protect the independence of local governments. Anything short of that is a betrayal of democracy at the grassroots.”
As Nigeria braces for another round of industrial unrest and growing public dissatisfaction, all eyes are now on the presidency, the CBN, and the National Assembly to end what many are calling a silent conspiracy against grassroots development.