The National Union of Local Government Employees (NULGE) has issued a stern warning to the Central Bank of Nigeria (CBN) against collaborating with state governors to undermine the financial autonomy of local government councils. This warning comes amidst reports that the CBN has refused to open accounts for local governments, citing non-compliance with auditing requirements.
According to NULGE National President, Hakeem Ambali, local governments have audited accounts for at least three years, contradicting claims of non-compliance. Ambali emphasized that local governments are ready to present their audited accounts to facilitate the opening of their accounts with the CBN.
The CBN’s stance has raised concerns that state governors may be attempting to maintain control over local government funds, despite a landmark Supreme Court ruling in July 2024. The ruling directed the Federation Account Allocation Committee to remit local government funds directly to their accounts, stripping state governors of control over the funds.
NULGE has urged the CBN to issue a formal directive on the requirements for opening accounts, ensuring that local governments receive their allocations directly. The union has also threatened to hire auditors to facilitate the process, highlighting the importance of financial autonomy for local government councils.
