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774 LG councils accuse state Finance commissioners of colluding with Governors, threaten legal action

The Incorporated Trustees of the Association of Local Governments of Nigeria (ALGON) have accused State Commissioners for Finance of conspiring with governors to obstruct the direct payment of allocations from the federation account to the 774 local government councils’ accounts. 

This accusation was made in a letter addressed to the Chairman of the Forum of State Commissioners for Finance of Nigeria, dated July 30 and signed by Mike Ozekhome (SAN). 

ALGON has threatened to initiate contempt proceedings against the commissioners if they fail to comply with a Supreme Court order that approved the direct allocation of FAAC funds to the 774 local government areas, bypassing state control. 

the Supreme Court had Earlier delivered its verdict following the federal government’s suit, which aimed to prevent the governors of 36 states from spending or tampering with the 20.6% allocation from the federation account to local government areas, among other reliefs targeting local government autonomy.

The apex court ruled that the allocations to joint state and local government accounts were merely procedural practices adopted in the past. It emphasized that it was not the intention of the 1999 Constitution for governors to retain funds due to the LGAs.

The apex court declared that the amount allocated to and credited to Local Government Councils in the Federation Account can be paid directly by the Federation to democratically elected Local Government Councils, among other rulings.

Seizing the moment, ALGON’s lawyer, Ozekhome, stated in his letter that his client’s enthusiasm over the apex court decision has been allegedly thwarted by the State Finance Commissioners’ Committee.

According to him, rather than comply with the clear directives of the apex court’s judgment, “your Committee, possibly acting on directives and at the behest of the 36 State Governors, has resorted to various excuses, artifices, designs, and subterfuges to undermine and frustrate this binding judgment of the highest court of the land, nearly three weeks after its delivery.”

Ozekhome expressed that his clients are disturbed by the situation and stated ALGON’s readiness to assist in working out the modalities for the FAAC disbursement, having engaged the services of certified Consultant Dr. Samuel Babatunde, who has already produced a workable template for immediate disbursements.

“You are well aware of this fact but have chosen to ignore our client and the apex court’s decision.

“Our clients have so far waited in vain to receive their allocated funds. This is unfortunate, highly regrettable, and completely unacceptable, as court judgments are meant to be obeyed without any further demand. We are discussing the clear judgment of the apex court! We need not remind your Committee that disobedience to court orders is severely punishable as contempt of court under our laws. We will say no more about the dire consequences of such a drastic step,” he stated in his letter, made available to Nairametrics.

He urged the commissioners and state governors to comply with the Supreme Court order.

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