Exploring the Complex Web on Local Government Funding in Nigeria: A Desperate Maneuver by Governors and Local Government Chairmen

By Abayomi Odunowo

In recent years, the local government structure in Nigeria has come under increasing scrutiny as allegations surface regarding the manipulation of council funds by state governors and elected chairmen. The Supreme Court’s landmark ruling granting financial autonomy to the Local Governments (LGs) has seemingly set the stage for a more independent financial landscape; however, evidence suggests that some governors have developed clandestine tactics to circumvent these legal advancements. This writeUp explores these dubious dealings, looking from the ethical, operational, political, and economic ramifications of the situation.

The core of the current issue stems from the financial autonomy—mandated by the Supreme Court—that theoretically empowers LGs to receive and manage their allocations directly from the Federal Government. However, local government chairmen have purportedly been coerced into making secret agreements with governors to ensure their continued subservience. In one instance, an elected chairman admitted to pledging allegiance to the governor in exchange for the promise of political survival, showing how financial independence is effectively undermined by dependency on political patronage.

The ethical implications of these arrangements are profound. The situation undermines the principle of democracy, where elected officials should be accountable to their constituents rather than to state governors. Oath-taking agreements that compel chairmen to remit funds back to dedicated state accounts not only negate the purpose of financial autonomy but also create a breeding ground for corruption. Chairmen become pawns in a cruel game of political chess, forced to prioritize their allegiance to governors over their duties to the communities they serve. This raises the question: At what cost is political survival being attained?

Operationally, bypassing the Supreme Court’s ruling undermines the efficiency of local governance. By design, local governments were supposed to enhance grassroots development by allowing councils direct access to funds. However, by entering agreements to divert funds back to the state, these councils are effectively strangled financially. The chairmen, stripped of necessary resources, cannot implement local projects nor render essential services to their constituents. This inefficiency stagnates development and, in some instances, breeds public discontent and distrust toward governmental systems.

Politically, this arrangement shifts the power dynamics in a detrimental manner. When chairmen are subservient to governors, it nullifies the checks and balances necessary for a healthy democracy. Chairmen essentially become extensions of the governors’ ambitions, thus negating the crucial role they should play in representing the interests of local constituents. As noted by Babatunde Emilola-Gazal, without quality leadership committed to their local government roles, there is little hope for reform or progress. The result is a political landscape that favors personal ambition and party loyalty over genuine service and accountability.

From an economic viewpoint, the current arrangement has severe implications not just for local governments but for the overall economy. The current revenue-sharing formula has been criticized as skewed, with local governments receiving a mere 20.6% of the federation account compared to the 52% allocated to the Federal Government. This inequity prolongs the cycle of poverty and underdevelopment at the grassroots level, where funds are desperately needed. If local governments cannot use their financial allocations effectively, the broader socioeconomic conditions of the populace will remain stagnant, limiting economic growth and exacerbating existing inequalities.

To address these systemic issues, it is imperative that local government chairmen demonstrate bravery and resist coercion from governors to remit their funds. As Wale Adedayo pointed out, the establishment of monitoring mechanisms to track the allocation and utilization of funds is vital. Furthermore, a reevaluation of the revenue-sharing formula is essential to allow local governments to function effectively. This calls for lasting reforms that ensure financial independence and accountability.

The machinations at play in local government funding in Nigeria represent a troubling intersection of desperation, political manipulation, and systemic injustice. While financial autonomy existed as a beacon of hope for local governance structure, the revelations surrounding allegiance pledges and fund remittances unveil a darker reality, wherein local leaders are shackled to the whims of governors. It is only by recognizing and confronting these unethical practices that genuine reforms can pave the way for a more responsible, effective, and independent local governance system, ultimately benefiting the Nigerian populace at large.

Otunba Abdulfalil Abayomi Odunowo
National Chairman AATSG
Mobile: +2349053535322
Sunday 13th of October 2024.