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State govs blocking LGs financial autonomy – Ita Enang, Osita Okechukwu

Published on April 13, 2025 at 08:52 AM

Peasant Empowerment Concern Initiative, PECi, a Non-Governmental Organization, NGO, has alerted Nigerians to the danger of impoverishing our rural areas, and by extension, peasants, due to the actions of the 35 State Governors who are blocking local government financial autonomy for sheer personal gains.

In a statement signed by its National Coordinator, Senator Ita Enang, and Publicity Secretary, Mr. Osita Okechukwu, PECi said that, according to records from the Federal Accounts Allocation Committee , FAAC, the milestone financial autonomy of local government councils initiated by President Bola Tinubu is in jeopardy, as only Delta State has complied, while 35 states have refused to open accounts with the CBN as directed.

It argued that local government financial autonomy is meant to develop our grassroots and empower peasants, the majority of whom reside in rural areas.

The group noted that the peasant empowerment and development gains intended by local government financial autonomy, which are being blocked by the State Governors, will further impoverish our citizenry, fuel urban migration, promote kidnapping, and spread rural diseases.

The NGO frowned upon the intimidation and coercion strategy allegedly adopted by the Governors, who cynically prefer using commercial banks for domiciliary account deposits, as these accounts are easier to manipulate, rather than CBN accounts which are beyond their control.

PECi challenged all progressives to join forces in advocating for the financial autonomy of local government councils, as it is the only means to stop State Governors who, for 25 years, have converted it into slush funds, thereby sabotaging the development of rural areas.

It could be recalled that on July 14, 2024, the Supreme Court, in a landmark judgment, granted financial autonomy to the 774 local government councils in Nigeria. This was followed by the directive that all local government councils must open domiciliary accounts with the CBN.

PECi reminisced on how the EFCC, unfortunately, is still burdened with the trial of many State Governors who pilfered local government funds for personal gains.

The group said it would be untoward and regrettable if, after Nigerians celebrated the liberation of local government funds through this progressive policy, they are still held hostage by State Governors who, for 25 years, frustrated the amendment of the 1999 Constitution in favor of local government autonomy.

PECi submitted that the mismanagement of local government council funds for personal gains over the years has stifled democracy and sabotaged peasants' empowerment at the grassroots level, thus undermining Mr. President’s milestone legacy.

The NGO, therefore, appealed to Mr. President, as a matter of urgent national importance, to freeze the accounts of State Governments that obstruct the direct allocation of funds to local government councils, in order to accelerate the development of our rural areas and deepen our democracy at the grassroots level.

PECi further appealed to the National and State Assemblies to include in the ongoing constitutional amendment the unique Uwais Electoral Reform recommendation, which states that chairpersons and commissioners of both INEC and SIEC should be publicly appointed through bidding to divorce the loyalty of appointees from their appointors, and enhance free and fair elections.

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