By Jesusemen Oratokhai
A rift has emerged between the Central Bank of Nigeria (CBN), and local government chairmen over the ongoing profiling of signatories for local government accounts, a key step in implementing financial autonomy for Nigeria’s 774 local government areas.
CBN’s Director of Legal Services, Kofo Salam-Alada, defended the exercise, stating that it aligns with standard banking procedures, particularly Know Your Customer (KYC), requirements, to ensure financial accountability.
“Anyone who will be a signatory to these accounts must be properly profiled. We are working with the Accountant-General’s office and have formally communicated with the LGAs,” he said at a Nigerian Bar Association (NBA) event in Abuja.
However, the Association of Local Governments of Nigeria (ALGON) pushed back, claiming it had not received any official communication from the CBN.
ALGON’s representative, Sam Akala, insisted that while the association supports local government autonomy, it remains unaware of the central bank’s ongoing process.
Attorney General of the Federation, Lateef Fagbemi (SAN), represented by Tijjani Gazali of the Federal Ministry of Justice, assured that full autonomy will commence once the CBN’s profiling is completed.
“The committee overseeing this process will soon finalize its work and present its recommendations,” he stated.
NBA President, Mazi Afam Osigwe, and National Union of Local Government Employees President, Hakeem Ambali, condemned the delays in enforcing the Supreme Court’s ruling on local government autonomy, warning that failure to implement the reforms undermines democracy at the grassroots level.
Despite the legal framework for financial independence, local governments remain caught in a power struggle, with transparency concerns threatening smooth implementation.
