Presidential Muhammadu Buhari and Rivers State Governor, Chief Nyesom Wike

Analysts observe that
the reason for creating the State Joint Local Government Account System by section 162 of the 1999 Constitution is to facilitate developments at the grassroots.
They note that the system is expected to ensure effective supervision of the distribution and efficient management of revenue accruing to the local governments from the Federation Account.
They, however, observe that instead of being a useful system for rural development, the joint account system has, somewhat, negated the reason for its creation.
“The system serves as a means of making unnecessary deductions from revenue accruing to the local governments from Federation Account to the coffers of state governments in Nigeria,’’ the analysts note.
In his view, Mr lawal Ibrahim, a public policy analyst, described the joint account as a fraudulent practice aimed at looting public treasury.
He said that unless the system was modified, it would be difficult for the local governments to develop through the system.
He solicited the separation of roles for the two tiers of government in the bid to deliver the dividends of democracy to the people at the grassroots.
“ State Joint Local Government Account System is the first step to stealing. State government should just contend itself with the supervisory role to the local governments.
“Let everybody be separately accountable for what it does. I think that is what the law of the land says,’’ he said.
Similarly, Dr Francis Fagboun, the Head of Local Government Studies Department, Obafemi Awolowo University, Ile-Ife, urged President Muhammadu Buhari to “liberate local governments from the shackles of state governors.’’
Expressing similar concern about the system, Mr Kola Adewusi, a former Chairman, Ife East Local Government Area in Osun, noted that there was extensive misappropriation of funds meant for local governments through the system.
To check this, Dr Michael Oke of the Department of Banking and Finance, Ekiti State University, Ado Ekiti, said local government councils should be autonomous in accordance with Section 162 Sub-section 6 and Sub-section 7 of the constitution.
He observed that successive local government administrations had not been able to perform because of state governments’ opposition to financially-autonomous local governments.
He insisted that the local government should, statutorily, take care of projects such as pipe-borne water.
“But these and lots more cannot be achieved because its finance is under the supervision of the state government.
“As a result of this, the local government in the country can no longer embark on any development projects,’’ he said.
But Mr Deji Gbadeyan, a constitutional lawyer, said that Section 162 Sub-section 6 and Sub-section 7 of the constitution were meant to protect the autonomy of local governments.
He attributed the loss of local government autonomy to the misinterpretation of the sections.
“There is nothing wrong with section 162, it is a perfect law, only the interpretation by the stakeholders is questionable,’’ he observed.
Gbadeyan pointed out that those who drafted the constitution never anticipated the sort of massive fraud that was rampant in local government administrations.
“Section 162 of the constitution was enacted to make the local governments more vibrant and development-oriented.
“But what we are seeing today in the interpretation of the section is that allocation to the local government from Federation Account now passes through the state government which keeps it on hold.
“Local government and the state will meet on the issue of state finance where the state dictates what quantum of finance should go to the local government,’’ he said.
He observed that Section 162 of the constitution had always been preventing the presidency from enforcing financial autonomy of local governments.
Narrating the experience of the local governments, Mr Kayode Akande, the Chairman of the Nigeria Union of Local Government Employees, Ibadan North Local Government Council of Oyo State, expressed regrets that local governments were grossly underfunded.
“There is little money left for development projects after payment of salaries due to the operation of the joint account.
He canvassed autonomy for local governments, insisting that it would enable them to pursue grassroots sustainable projects.
“Non-payment of salaries to workers at the state level by the state governments has affected the local government workers who have also not been able to receive their salaries.
“Assuming autonomy has been granted, funds would be accruing directly to the local government and the issue of non-payment of salaries would not have arisen,’’ he said.
Irrespective of these views, Gov. Ibikunle Amosun of Ogun, said local governments in the state would collapse if they were granted autonomy.
He expressed the opinion while reacting to President Muhammadu Buhari’s comment on State Joint Local Government Account System in his inaugural speech on May 29.
Amosun said that it would be in his interest if local governments were granted autonomy because it would remove a lot of responsibilities from the state government.
He, however, noted that the local governments do not have the capacity to generate enough funds to meet their responsibilities, insisting that “they will be on their own.
“Some governors said that granting autonomy to council areas is not going to favour them.
“Those governors that say that the autonomy thing will not favour them are those governors that deduct from local government allocation from the federal allocation.
“Truly, what is coming from the federal allocation is no longer enough, for me, this development will even put more challenges on the council areas.
“If they want autonomy, let them take their autonomy, if they can’t pay salaries, they won’t come back to me.
“If they can’t pay teachers or embark on developmental projects, they will know that they are the ones that cannot pay and not the state.
“But, I want to say here that the way it is, they cannot pay salaries; if they have the autonomy they are craving for, definitely they will be on their own completely.
“They need the support of the state. That has been my experience since I became the governor.’’
Observers, nonetheless, noted that since majority of houses of assemblies had voted against local government financial autonomy during the recent National Conference on Constitution Review, granting it may be difficult.
Adeoti writes for the  News Agency of Nigeria

Victor Adeoti