LOCAL GOVERNMENT AND FINANCIAL AUTONOMY

Financial independence for local councils remains elusive

In a landmark judgment on 11 July 2024, the Supreme Court ordered that statutory funds for Nigeria’s 774 local government areas be paid directly to democratically elected councils and abolished the state‑local government joint account system. Yet two years later, the ruling has largely gone unenforced. A few states claim to have released control of council funds, but most still manage the money through the Federation Account Allocation Committee (FAAC) using the old distribution structure. For example, the N1.46 trillion allocated to local government councils for the first quarter of 2026 was received by state governments.

President Bola Tinubu authorized the suit to find a simpler way to detach council funds from governors’ control. The apex court’s decision struck down Section 162(6) of the constitution, which created the joint account into which Federation Account monies are paid for onward disbursement by the states. Nevertheless, state governments continue to exercise influence over local governments. Ironically, none of the 774 local government areas have opened accounts with the Central Bank of Nigeria to receive direct statutory allocations.

In Imo State, Federation Account allocations are reportedly paid directly to the governor, who then distributes salaries and operating costs to the 27 council chairmen. In nearby Enugu State, the funds are still disbursed through the state’s Joint Allocation Accounts Committee (JAAC). Additionally, the 17 local government chairmen in Enugu have granted a power of attorney to the state government, through the Board of Internal Revenue, authorizing it to collect and manage both tax and non‑tax revenues of the councils.

Although Lagos State reports no interference with council funds, allocations for its 20 local governments are still paid through JAAC and shared among councils and local council development areas by a joint committee of the state and the councils. Osun State faces a more complex situation, awaiting resolution of a lingering local government crisis between the state and the federal government.

Control of local councils is also reinforced through elections. Section 197 establishes State Independent Electoral Commissions (SIECs) to conduct local government polls. The SIECs are mainly appointed and funded by state governments, making them answerable to governors.

For the third tier of government to be accountable, a free and fair electoral process is essential. However, the election of council officials remains skewed, with governors retaining significant influence. In states that hold elections for local government chairmen and councillors, winners often secure their positions with gubernatorial support. After election, many officials either feel obliged to serve the governors or fear asserting independence.

These dynamics have contributed to chronic underdevelopment in council areas, which remain unable to deliver on their primary mandate of providing basic social infrastructure such as primary healthcare, primary education, feeder roads and modern markets. While Tinubu threatened an executive order to enforce the Supreme Court ruling, many believe that constitutional reform is the only lasting solution. In many federations, local governments are administrative units of the states, and this structure may be the key to resolving the issue.

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SA and the Rest of Africa

Xenophobia shouldn’t be allowed to replace apartheid or fester much longer, writes Monday Philips Ekpe

The peculiarity of South Africa goes beyond its geography, being located at the southern‑most part of Africa. Same for its enduring status as arguably the continent’s most successful and thriving economy. That makes it a beautiful bride that’s attractive to opportunity seekers from the less‑endowed nations in its part of the planet and elsewhere. But, quite unfortunately, more than many countries on earth, the rainbow nation has hosted two of humanity’s worst conditions: apartheid and xenophobia. While history doesn’t restrict these extreme abnormalities to SA, its association with them has become an albatross. And with the advancement in information and communication technology (ICT) somewhat on steroid, it’s left to the imagination how posterity will remember this enchanting land.

So much has been said about the manic attacks on African migrants by irate South Africans whose angst stems from the belief that their jobs are being snatched by foreigners, particularly blacks. This illogic has been begging to be seen for what it is. A rare chance for official intervention presented itself the other day when South African President Cyril Ramaphosa hosted his Mozambican counterpart, Daniel Chapo, in Pretoria. Ramaphosa challenged his continental colleagues to fix their underperforming economies which make “people to migrate in large numbers and seek refuge in different parts of the continent, including South Africa”. He bungled it right there. It was an endorsement of the sad premise upon which his uninformed, violent compatriots have built their defence. Your Excellency, Sir, no further proofs are needed to show the overarching failure at the various levels of leadership across Africa but framing the issue this way is simplistic.

A presidential statement later tried to clarify Ramaphosa’s stand thus: “These (xenophobic assaults) are the acts of opportunists who are exploiting the legitimate grievances, particularly those of the poor, under the false guise of ‘community activism.’ Some of these people are assuming functions that only state officials are permitted to perform. Such lawlessness will not be tolerated, regardless of who the perpetrators or victims are… In a country with high unemployment, some employers are exploiting undocumented, cheaper foreign labour over hiring citizens and paying them legal wages. This is fuelling social tension and undermining labour protection laws… We are stepping up workplace enforcement against employers who hire undocumented foreign nationals in violation of labour and immigration laws…”

This attempt misses the mark still. If there’s anything black South Africans should avoid like a plague, it’s the “we vs they” narrative. For one, it’s a variant of the segregation they suffered in the hands of their white tormentors. True, no one should deny them their right to nationalism having gone through a lot to reach where they are now.

The very arduous route to the freedom that has resulted in their present relative peace