Amid rising concerns over the full implementation of local government autonomy in Nigeria, key government agencies have convened high-level discussions to address the recent setback in the direct payment of funds to local councils.
The move comes after several challenges emerged, threatening the smooth execution of the policy aimed at granting local governments financial independence from state governments. The direct payment model, designed to ensure transparency and efficiency, has encountered resistance from certain quarters, raising fears that local councils may continue to operate under the tight grip of state authorities.
Sources within the government disclosed that the brainstorming sessions involve top officials from the Ministry of Finance, the Central Bank of Nigeria (CBN), the Revenue Mobilization, Allocation, and Fiscal Commission (RMAFC), and other critical stakeholders. The discussions are focused on devising strategies to navigate legal, administrative, and technical bottlenecks hindering the seamless disbursement of funds.
A senior government official, who spoke on condition of anonymity, revealed that political interference and entrenched bureaucratic interests remain significant obstacles to the full realization of local government autonomy. “Certain state governments are not willing to relinquish control over these funds, despite the constitutional provisions and recent judicial pronouncements in favor of autonomy,” the source noted.
The National Union of Local Government Employees (NULGE) has also raised concerns over the development, warning that continued delays in implementing direct funding could cripple grassroots governance and development. “Local governments are the closest tier of government to the people. Starving them of funds means denying rural communities essential services, infrastructure, and economic opportunities,” said a NULGE spokesperson.
Meanwhile, legal experts have advised the Federal Government to take decisive action to enforce financial autonomy for local councils. Some have called for constitutional amendments or executive orders to eliminate loopholes that state governments exploit to maintain control.
As the debate rages on, stakeholders are urging President Bola Tinubu’s administration to demonstrate political will by ensuring that local governments receive their allocations directly, without interference. Observers believe that a failure to do so could weaken governance at the grassroots level and erode public trust in the ongoing reform efforts.
With the issue now at the center of national discourse, the coming weeks will be critical in determining whether Nigeria will finally break free from the decades-old stranglehold of state governments on local councils—or if the struggle for true autonomy will continue to face an uphill battle.