…NFIU to Monitor Fund Utilization
…EFCC, ICPC to Prosecute Corrupt Officials
The Association of Local Governments of Nigeria (ALGON) has announced that all 774 local government councils are set to open dedicated accounts with the Central Bank of Nigeria (CBN) to facilitate direct disbursements of allocations from the Federation Account.
ALGON’s National President, Bello Lawal Yandaki, emphasized that this move is essential for implementing the Supreme Court’s ruling on direct allocations to local councils. He disclosed that the CBN is prepared to open the accounts once it receives directives from the Federal Government.
The Nigerian Financial Intelligence Unit (NFIU) will oversee the utilization of these funds to ensure transparency and accountability. Meanwhile, the Federal Government has assembled a team of anti-corruption officials from the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to prosecute any council chairmen or officials involved in financial misconduct.
Speaking in Katsina, Yandaki addressed concerns over delays in disbursing funds to local councils, attributing them to the councils’ failure to submit required bank details to the Federation Accounts Allocation Committee (FAAC). He reassured stakeholders that the delay is temporary and that disbursements will begin once the necessary details are provided.
Yandaki said, “The CBN is ready to open the accounts within 24 to 48 hours once directed by the Federal Government. Discussions with stakeholders, including labour unions and local government chairmen, are ongoing to finalize the implementation process.”
A source at a recent FAAC meeting revealed that some councils have yet to submit their account details, further delaying the process. FAAC officials urged councils to resolve these administrative issues to avoid missing their allocations for January.
The Federal Government’s decision to disburse funds directly to local councils follows the Supreme Court ruling affirming their autonomy. However, compliance remains a concern, with some states, such as Anambra, maintaining laws requiring joint state-local government accounts for disbursements.
To prevent the diversion of funds by state governors, the anti-corruption team will monitor council accounts. Officials warned that any chairman found transferring funds in bulk to state governments would face legal consequences.
“Local government chairmen must understand that they are now fully responsible for their financial operations. If they divert funds or violate the law, anti-corruption agencies will act swiftly,” the source stated.
These measures are expected to enhance financial transparency and accountability, improving service delivery at the grassroots level.
“This initiative is transformative. It ensures that local government allocations are protected and that chairmen are held accountable. It’s a significant step forward for Nigeria’s democracy,” the source concluded.
