Despite N2.67tn FAAC Allocation, LGs Struggle with Infrastructure Decay, Widespread Poverty

Despite receiving an estimated N2.67 trillion from the Federation Account Allocation Committee (FAAC) in the first nine months of 2024, the Local Governments (LGs) in Nigeria, the third tier of government are still facing, inadequate infrastructure, poverty, and unemployment and fragmented developmental planning, among other challenges.Data compiled by THISDAY from the FAAC allocations to the three tiers of government between January and September 2024, showed that the federal government and states were allocated N3.505 trillion and N3.672 trillion, respectively, while the local government areas got a total of N2.672 trillion. This brings the total amount shared by the three tiers of government in the review period to N9.849 trillion.

However, a total of N912 billion was allocated to the oil producing states during the nine-month period.Many commentators have argued that the rising spate of banditry, kidnapping, infrastructure decay and other social vices and challenges facing the country over the years was as a result of the neglect of the local government system.

In the past few weeks, States have been making frantic efforts to conduct local government elections in compliance with a Supreme Court’s decision that only elected officials shall run the third tier which ushers in its autonomy.As a result of the Apex Court’s judgement that prohibited federal allocation to any council being administered by caretaker committees, States have been conducting local government elections.

The Supreme Court had declared it unconstitutional for state governors to hold funds allocated to local government councils.

In the judgment delivered by Justice Emmanuel Agim, the seven-man panel had held that the 774 local government councils in the country should manage their funds themselves.Commenting on the poor state of local governments in the country, despite the huge FAAC allocations, Executive Director, Renevlyn Development Initiative (RDI), Philip Jakpor said: “I strongly believe local government autonomy when allowed to operate as conceived by the federal government will better the lot of people at the grassroots.“It will bring development closer to the people but unfortunately, we have seen how some state governors are trying to arm-twist the local governments through laws such as the state local government accounts that Governor Soludo signed into law in Anambra State.

Such laws are deliberately initiated for the purpose of maintaining the status quo and dictating where money goes or not.“So we see that the state governments that always point the accusing finger at the federal government for stalled development are themselves stalling development in their states just to remain relevant. But there’s already a Supreme Court judgment that mandates the autonomy of the local governments so the local governments should work with lawmakers in their states to ensure the law is implemented to the letter.“Civil Society and lovers of democracy and development should rise against this malfeasance by the governors.

It is getting evident that Nigerians will not get good governance if everyone keeps quiet and allows these actors to ride roughshod unchallenged.”Also, Executive Director Rule of Law and Accountability Advocacy Centre (RULAAC), Okechukwu Nwangwuma said: “The Tinubu government needs to demonstrate genuine commitment to implementing strategies that ensure that Nigeria can work towards more effective local governance and ensure that allocated funds contribute positively to the lives of citizens.“This requires a multifaceted approach that includes implementing robust financial monitoring systems that helps to ensure that funds allocated to local governments are used appropriately.

Creating public dashboards for tracking expenditures can encourage accountability.

“Secondly, enforcing existing laws related to local government financing and ensuring adherence to the Supreme Court ruling on local government autonomy can help protect LG funds from diversion at state levels.

Thirdly, empowering local governments to manage their finances independently, including direct access to federal allocations, can reduce interference from state governments.“Fourthly, providing training and resources for local government officials in financial management and project implementation can enhance efficiency and reduce mismanagement of funds and encouraging citizen participation in budgeting processes can help ensure that funds are allocated to projects that address local needs, fostering greater public scrutiny of financial activities.“Strengthening the role of the judiciary in addressing cases of fund misappropriation and ensuring penalties for offenders might deter future diversions.

Introducing performance-based funding linked to measurable outcomes can incentivise local governments to utilise funds effectively for community development.”The Acting State Chairman of Accord Party, Lagos State, Hon Dele Oladeji, pointed out, “It is a public knowledge that governors of each state have caged Local Government Chairmen.

And in addition to caging Local Government Chairmen, they have cornered the fund and the resources of the Local Government.

Firstly, cornered its funds through the joint account they’ve been using with Local Governments in Nigeria for years now.

From that joint account, Local Governments accruable funds are being siphoned by Governors. “Secondly, they cornered the resources and the funds of the Local Governments through revenue channels. All revenue agencies and channels of local governments are being controlled by state governors.“So, governors have cornered the resources and the funds of local governments, and have to a large extent depleted local government administrations and administrators of needed fund to implement any impressive change or development at the local government level.”He stressed the need for local governments to be autonomous in authority, administration, and also in their finance.

Kayode Tokede and Sunday Ehigiator

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