FG blocks governors from monopolising local government allocations

MAY 6, 2019

BY VICTOR OGUNYINKA

Sets June 1, 2019 takeoff date for direct allocations to 774 LGAs

Limits daily cash withdrawal from LGA accounts at N500,000

Any transaction above N500,000 must go via cheques/e-transfer

Soni Daniel – Northern Region Editor

Alarmed by the continuous pillage of cash allocated to local government councils across the country by the state governments through the Stat, Joint Local Government Accounts, the federal government on Monday outlawed the meddling of states into council allocations.

The federal government, through the newly inaugurated Financial Intelligence Unit, NFIU, which was excised from the Economic and Financial Crimes Commission, set June 1, 2019, as the takeoff date of the new order, making it compulsory for all LGA allocations to go straight to their respective bank accounts. The decisions are contained in a guideline released by the NFIU after a lengthy meeting with officials of commercial banks in Abuja.

Guidelines To Reduce Vulnerabilities Created by Cash Withdrawals from LG Funds throughout Nigeria, Effective 1st June 2019, is said to have been prompted by threats by the international financial watchdog to sanction Nigeria because of abuse of financial abuse.

The NFIU warned banks to comply with immediate effect, saying that any of them that flouts the order would be sanctioned. The agency said: “The NFIU requests all financial institutions, other relevant stakeholders, public servants and the entire citizenry to ensure full compliance with the provisions of the guidelines already submitted to financial institutions and relevant enforcement agencies including full enforcement of corresponding sanctions against violations from 1st June, 2019. “Having realized through analysis that cash withdrawal and transactions of the State, Joint Local Government

Accounts (SJLGA), poses biggest corruption, money laundering and security threats at the grassroots levels and to the entire financial system and the country as a whole, decided to uphold the full provisions of section 162 (6) (of the 1999 Nigerian Constitution as amended which designated “ State Joint Local Government Account into which shall be paid allocations to the local government councils of the state from the federation account and from the government of the state” “The amount standing to the credit of local government councils of a state shall be distributed among the local government councils of that state” and not for other purposes. “As far as the NFIU is concerned the responsibility of the account as a collection account is fully reinstated.

“In addition, taking such measures was necessitated by prompting reasons on the NFIU to respond to threats of isolating the entire Nigerian financial system by other International financial systems because of deficiencies in our anti-money laundering and counter-terrorism financing implementation. “Therefore, it is no longer possible to allow the entire system to suffer the deliberate and expensive infractions or violations by public officials and/or private business interests. “Henceforth, all erring individuals and companies will be allowed to face direct international and local targeted sanctions, in order not to allow any negative consequences to fall on the entire country. “To be precise, with effect from 1st June any bank that allows any transaction from any local government account without monies first reaching a particular local government account will be sanctioned 100%, both locally and internationally.

“In addition, a provision is also made to the effect that there shall be no cash withdrawal from any local government for a cumulative amount exceeding N500,000:00 per day. Any other transaction must be done through valid cheques or electronic funds transfer. “The complete guidelines have been released to the Governor of the Central Bank of Nigeria, the Chairman, Economic, and Financial Crimes Commission (EFCC), the Chairman, Independent Corrupt Practices Commission (ICPC) and Chief Executive Officers of all Banks and other financial institutions.

“Any state government that is willing to seek any expert economic advice in the unlikely event of these guidelines constituting an inconvenience to the management of the state can work with the NFIU and /or CBN,” the NFIU said.

https://www.vanguardngr.com/2019/05/fg-blocks-governors-from-monopolising-local-government-allocations/

Not sure all the governors we like this. Good one though

This second term go sweet . Next Level Things.....

Good one

Really? June don come already we dey observe.

Good One. I'm happy PMB is doing this.

Great. News like this is very encouraging. I must say that Mr Buhari will win a lot of mass appeal from this one as it will definitely shapen governance at d grassroots. Waiting for its implementation. Thumb up FG on this one.

I love this

Good development

Sowore is putting these guys on their toes. Credit goes to Omoyele Sowore

To be honest i dnt even knw the functions of local governments

Optional09:
Sowore is putting these guys on their toes. Credit goes to Omoyele Sowore

smh.

If they succeed in this, then it would be a huge plus for the government.

State governments have been using local government allocations as pocket money to be dispensed with no accountability whatsoever. In the face of this, any chairman that dares to lift a finger in protest gets kicked out of office by the local councillors who are literally handpicked by the governors.

I hope the Chairmen utilise the funds judiciously should the plan come to fruition.

jlinkd78:
Great. News like this is very encouraging. I must say that Mr Buhari will win a lot of mass appeal from this one as it will definitely shapen governance at d grassroots. Waiting for its implementation. Thumb up FG on this one.

My fear is that the chairmen themselves are another class of corrupt individuals. We are most likely going to start witnessing them building palaces in Abuja in an event this succeeds. Nevertheless, it is our hope they apply the funds specifically to what they are meant for.

Just a little project here and there is what Nigerians are asking for. We are the least demanding citizens in this world if you ask me but our politicians are just too lazy and corrupt to meet even the tiniest of demands.

So unfortunate.

Good move.
L.G is directly close to the masses.

How do we now checkmate the Local Government Chairmen to prevent looting?

[s]

omenkaLives:
My fear is that the chairman themselves are another class of corrupt individuals. We are most likely going to start witnessing them building palaces in Abuja in an even this succeeds. Nevertheless, it is our hope they apply the funds specifically to what they are meant for.

Just a little project here and there is what Nigerians are asking for. We are the least demanding citizens in this world if you ask me but our politicians are just too lazy and corrupt the meet even the tiniest of demands.

So unfortunate.

[/s]
shutup

[s]

omenkaLives:
If they succeed in this, then it would be a huge plus for the government.

State governments have been using local government allocations as pocket money to be dispensed with no accountability whatsoever. In the face of this, any chairman that dares to lift a finger in protest gets kicked out of office by the local councillors who are literally handpicked by the governors.

I hope the Chairmen utilise the funds judiciously should the plan come to fruition.

[/s]
you're right bra

This is a very very good development.

It would have far reaching effects on grassroots development. More serious individuals might now want to show interest in local govt governance.

In fact I think this is one of the issues at the core of restructuring with no noiṣe nor fanfare.

Strangely though, a lot of interest is not being shown to this news on this forum, in spite of it being a watershed development.
One would have thought people here would be excited.

This second term that's even yet to start, eh... One can't help but look forward to great developments like this.

I hope the govt sees this through.

meaning Nigerians can storm their local government to beat up the chairman if the funds re not adequately utilised. i hope the state government can also give them target to meet in terms of infrastructural development in the respective domains.
now that governance has been brought to the doorstep of grassroot this should facilitate mass participation in local politics.

Woow

Impressive
We can easily stone any corrupt local gvt chairman to death if they misbehave

The issue here now is that, so many states have not don't local government election in years. All the governor does is appoint care taker committee and leave it like that.

How would we solve that

Sai Buhari....powered by Tinubu

I need to cook rice today, beans don tire me

Lalasticlala day don break oh...we don sight new moon since 2 days ago.

Optional09:
Sowore is putting these guys on their toes. Credit goes to Omoyele Sowore

Is this poster mentally okay?

cola:
This is a very very good development.

It would have far reaching effects on grassroots development. More serious individuals might now want to show interest in local govt governance.

In fact I think this is one of the issues at the core of restructuring with no noiṣe nor fanfare.

Strangely though, a lot of interest is not being shown to this news on this forum, in spite of it being a watershed development.
One would have thought people here would be excited.

This second term that's even yet to start, eh... One can't help but look forward to great developments like this.

I hope the govt sees this through.

Indeed a good development.

Better late than never, state governors have rendered the local governments comatose by pilfering their money and ursurping their responsibilities.

omenkaLives:
My fear is that the chairman themselves are another class of corrupt individuals. We are most likely going to start witnessing them building palaces in Abuja in an even this succeeds. Nevertheless, it is our hope they apply the funds specifically to what they are meant for.

Just a little project here and there is what Nigerians are asking for. We are the least demanding citizens in this world if you ask me but our politicians are just too lazy and corrupt the meet even the tiniest of demands.

So unfortunate.

Yes, at least EFCC will see easier fishes to fry

The fact is that Governors will start imposing their puppets as Local Government Chairman unless the constitution is reviewed to grant full autonomy to Local Governments.