The Association of Local Governments (ALGON) announced on Sunday that the 774 local governments in Nigeria must create special accounts with the Central Bank of Nigeria (CBN) for them to receive allocations directly from the Federation Account.
Bello Lawal Yandaki, the national president, stated that the account’s establishment is essential to carrying out the Supreme Court’s decision regarding direct council allocations.
According to him, the apex bank is awaiting instructions from the Nigerian government about account opening.
According to a source, the Nigerian Financial Intelligence Unit (NFIU) is also tasked with keeping an eye on how the chairmen are using the money under the values of accountability, transparency, and good governance.
The source claims that to prosecute council chairmen and other officials who engage in corrupt activities, the Nigerian government has assembled a group of anti-corruption agents from the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
Speaking to reporters in Katsina, the capital of Katsina State, Yandaki reassured them that the councils would not be receiving their money right now.
He stated that there was no reason for concern and that the delay was caused by the council’s failure to provide the Federation Accounts and Allocations Committee (FAAC) with the bank information needed to process the payments.
The CBN is currently awaiting instructions from the Nigerian government to activate local government accounts for the individual states, which may take anywhere from 24 to 48 hours, he stated.
“I am a member of the subcommittee that was established to eliminate controversial grey areas, and we have already met with pertinent parties such as NULGE, local government chairmen, trade unions, and others.
“There is no set timeline; hopefully, we are just wrapping up meetings and submitting to the Nigerian government for implantation.” “There is a consensus that the start of direct federal revenue allocations to LGs will occur this January.”
The structures have not yet been erected, according to a source who attended the FAAC conference over the weekend. Coordination between the LGAs is required.
“The delay occurred because those who opened an account with the CBN failed to provide the FAAC with their information for crediting.”