The National Union of Local Government Employees (NULGE) has cautioned the Central Bank of Nigeria (CBN) against assisting state governors in weakening the financial independence of local government councils.
This follows reports that the apex bank has refused to open accounts for local councils, citing alleged non-compliance with auditing requirements.
Speaking to Punch, NULGE National President Hakeem Ambali dismissed claims that local governments had failed to submit two years of audited accounts. He insisted that no council in the country lacks at least three years of audited financial records.
Ambali emphasized that local governments are fully prepared to present their audited accounts, facilitating the smooth opening of their accounts with the CBN. This move aligns with the Supreme Court’s landmark ruling, which mandates the Federation Account Allocation Committee (FAAC) to directly remit funds to local governments.
“There is no local government without at least three years of audited accounts. This is made possible due to the presence of the Auditors-General at the local government levels.
“The CBN must understand that it cannot go against a landmark Supreme Court judgment. No organisation should allow itself to be used by governors against the realisation of the autonomy for Local Governments,” Ambali stated.
He called on the Central Bank of Nigeria (CBN) to issue a clear directive outlining the requirements for opening accounts, stating, “Once the CBN provides a memo specifying their needs, local governments will promptly comply.”
This caution comes in response to reports that local governments are facing difficulties in accessing their statutory allocations, as the CBN has allegedly declined to open accounts for them, citing the non-submission of two years’ worth of audited financial reports.
Amid concerns that the CBN’s stance is hindering the full implementation of the Supreme Court ruling, NULGE has urged the apex bank to resist any efforts by state governors to obstruct the process.
