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Where is our local Government Fund?
Written by Jeff Nkwocha Thursday, 26 January 2012
ShareThe Central Bank of Nigeria (CBN) in its economic report for the third
quarter of 2011 announced that the total receipts by the 774 LG
councils from the Federation and VAT pool Accounts for the period of
July, August and September was N493.77 billion. The question is, does
this money actually reach the local government councils. The answer is
No. Media report indicated how allocations to LGAs' were been high
jacked by state governors, used for electioneering campaigns, shared
among traditional rulers, political God-fathers, members of state
assemblies or out rightly diverted to non-exiting projects.
The latest criminal fad now is state governors redistribute
allocations to LG from the federation account and give less than N20
million to each council to pay salaries, and take care of their
overhead costs.
In his memo to Nigerians tagged, declare state of emergency in the
third tier of government, Hon. Felix Akhabue, National President of
Association of local government of Nigeria ALGON said,
'A situation where allocations already made to the local governments by
the Federation Allocation Account Committee (FAAC) are subjected to
redistribution by the state government is a clear breach of the
constitution. The question is can the federal government police funds
disbursed to the state governments from federation account? The answer
is a clear NO. Then where does the state derive the legal and moral
backing to do the same to local governments. Statutory allocations to
each tier of government should be sacrosanct; it is only by being so
that you can hold that tier of government responsible and accountable'.
If we are to reposition our councils for effective services delivery to the
people, eradicate poverty,provide infrastructure, the constitution should
be amended to stop meddling with council finances by the states.
Jeff Nkwocha
LG Study Network
Warri Delta state
www.nigeria-local-government.blogspot.com
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