Before Governors Milk
Before Governors Milk LGA’s Funds Dry
By Alabidun Shuaib Abdulrahman
The agitation for local government’s independence has been
louder in recent times by well-meaning Nigerians, considering how
this third tier of government has become subservient to state
governors across the country.
Undoubtedly, the Local Government is the closest arm of
government to the masses. As it is the responsibility of the local
governments to provide basic services and projects to the
communities at the grassroots.
According to the residual legislative list, every local
government area has the responsibility for the periodic maintenance
of cemeteries, markets and motor parks, waste collection, social
care, business support, registrar services, licensing, and pet
control. Meanwhile, primary education, agriculture, and health,
among other activities, are what State Governments and local
governments can both execute.
While the LGAs would have been able to discharge their
responsibilities and also offer good governance effortlessly, there
is the challenge of limited sources of revenue, a situation which
has made the task of providing or executing meaningful
developmental projects apparently impossible at the grassroots. And
unfortunately, with the circumscribed share from federal account,
the local government allocations have become Christmas chicken,
which the state governors do recklessly feast on at wish.
However, to curtail the avariciousness of the governors,
Nigerian Financial Intelligence Unit, NFIU, on May 7, had issued a
guideline to reduce vulnerabilities created by cash withdrawals
from local government funds throughout the country. These
guidelines, amongst other things, seek to systematically restore
councils financial autonomy, ensure funds go directly to the
council accounts, help the agency monitor transactions of the
accounts, and at most, ensure transparency in how the funds are
handled.
However, the governors of the 36 states, under the aegis of the
Nigeria Governors Forum, have rejected the financial autonomy
granted the 774 LGAs in the country.
The 36 governors also approached President Muhammadu Buhari on
the actions taken by the NFIU, which they accused of dabbling into
a matter that was “beyond its mandate.”
The Chairman of the NGF, who is also the outgoing Governor of
Zamfara State, Abdulaziz Yari, was said to have signed a letter to
the President on behalf of his colleagues.
In the letter, the governors expressed dismay and angst at the
NFIU’s “brazen attempt to ridicule” their collective integrity and
“show total disregard for the constitution of the Federal republic
of Nigeria (1999) as amended.”
It will be recalled that the NFIU, which was excised from the
Economic and Financial Crimes Commission, set June 1, 2019, as the
take-off date of the new order, making it compulsory for all LGA
allocations to go straight to their respective bank accounts.
The NFIU, in its guideline, also pegged the total amount of cash
that could be withdrawn from any LGA in a day at N500, 000.
But the NGF Chairman argued that nothing in the NFIU Act 2018
gave the body the powers that it tried to exercise in the
guidelines that it released, saying the unit was acting in excess
of its powers and in doing so, it showed complete disregard for the
constitution.
The NGF said that local government councils were not financial
institutions, but creations of the constitution. The governors
added that they are not reporting entities and therefore, not under
the NFIU in the manner contemplated by the latter’s so-called
guidelines.
The governors, therefore, contended that the NFIU should comply
with “those standards on combating Money Laundering and Financing
of Terrorism and its proliferation as stipulated and not dabble
into matters that are both constitutional and beyond NFIU
purview.”
The NGF’s excuse, if considered, can be in contrary to the
provision of Section 7 of the Nigeria’s 1999 Constitution, which
states that the system of LG by democratically elected Local
Government Council is guarantee and accordingly, the government of
every State shall ensure their existence under a Law which provides
for the establishment, structure, composition, finance and
functions of such Councils.
Statutorily, however, the state governments do not need to be
worried about this development except there are advantages
derivable in taking charge of the local government finance.
The terrible condition and development at the various local
governments has been worrisome over the years. Many Nigerians do
not even know the function of local governments anymore. And this
is to say the least deplorable.
In time past and even now, the various state government have
been accused of insensitivity especially as massive corruption has
allegedly rocked the local government administration in
Nigeria.
One can only call on the governor’s forum to embrace measures
meant for better governance and stop agitating to keep funds if
there are no ulterior motives.
It is, therefore, advisable to the state governors, instead of
relying solely on the federal allocation, they should think out of
the box by looking inward for resources to develop and transform
their respective states because every state is blessed. They should
diversify their states’ economy and increase revenue generation for
development.
Also, there must be administrative procedures in our LGs to
ensure dutiful, committed, dedicated and effective leaders.
The NFIU decision is well thought out and for the best interests
of the Nigerian society, it should be encouraged and not stopped.
It should be a case of “No Retreat, No Surrender”.
Alabidun Shuaib Abdulrahman is a staff writer with Image
Merchants Promotion Limited; Publishers of PRNigeria and Economic
Confidential and can be reached on alabidungoldenson@gmail.com