In a bold move that underscores the demand for transparency and accountability, the Socio-Economic Rights and Accountability Project (SERAP) has called on Nigeria’s 36 state governors and the Minister of the Federal Capital Territory, Abuja, Mr. Nyesom Wike, to “immediately account for and return the local government funds they have collected over the years.”
This urgent plea follows a landmark decision by the Supreme Court, which declared the retention and usage of funds meant for the 774 local governments by the 36 state governors and the FCT minister as unconstitutional and unlawful. The ruling marks a significant victory in the fight against the alleged misappropriation of public funds.
In a statement signed by SERAP’s Deputy Director, Kolawole Oluwadare, the organization lauded the Supreme Court’s decision, stating, “We applaud the Supreme Court for this groundbreaking judgment, which promises to end the persistent misappropriation of trillions of naira in FAAC allocations meant for local governments.”
SERAP emphasized that the Supreme Court’s judgment sets a clear legal precedent, holding governors and the FCT minister accountable for the local government funds they have collected. “Implicit in the Supreme Court judgment is the requirement for the governors and FCT minister to immediately account for and return the funds meant for local governments but retained and used or allegedly misused by them,” the statement read.
Oluwadare added, “Accounting for and returning the LGA funds collected would build trust in democratic institutions and strengthen the rule of law.” He further urged the National Assembly to amend Section 162 of the Nigerian Constitution to ensure that local government allocations are directly paid to local government areas, bypassing the state governors and FCT minister.
SERAP issued a stern warning: “If the governors and FCT minister fail to account for and return the funds meant for local governments within 7 days, we shall consider appropriate legal actions to compel compliance in the public interest.”
Highlighting the broader implications, the organization noted, “It is in the public interest for the governors and FCT minister to immediately account for and return the funds meant for local governments since 1999. Doing so would alleviate poverty, improve access to basic public goods, and enhance the ability of local governments to effectively discharge their responsibilities.”
Reflecting on past misuse, SERAP recalled former President Muhammadu Buhari’s 2022 statement: “If the money from the Federation Account to the State is about N100 million, N50 million will be sent to the chairman, who will sign that he received N100 million. The chairman will pocket the balance and share it with whoever he wants to share it with.”
The magnitude of the issue is underscored by reports that the 36 states and the FCT have collected over N40 trillion in federal allocations meant for local governments. In November 2023 alone, the Federation Account Allocation Committee (FAAC) disbursed N225.21 billion to states, and in December 2023, states collected N258.81 billion, all intended for local government areas.
This bold stance by SERAP, backed by the Supreme Court’s judgment, signals a critical juncture in the pursuit of financial accountability and the empowerment of local governance in Nigeria.
PIONEER NEWS 