The Socio-Economic Rights and Accountability Project (SERAP) has issued a strong call to Nigeria’s 36 state governors and the Minister of the Federal Capital Territory (FCT), Mr. Nyesom Wike, urging them to account for and return the local government funds they have collected over the years. This demand follows a landmark Supreme Court ruling that declared the retention and usage of these funds by state governors and the FCT minister as unconstitutional and unlawful.
The Supreme Court’s decision is a significant milestone in the fight against corruption and the misappropriation of public funds. In a statement signed by SERAP’s deputy director, Kolawole Oluwadare, the organization expressed its approval of the ruling, describing it as a groundbreaking decision that would put an end to the persistent alleged misappropriation of trillions of naira in Federation Account Allocation Committee (FAAC) allocations meant for local governments.
The Supreme Court judgment sets a clear legal precedent, providing a basis to hold the governors and the FCT minister accountable for the local government funds they have collected. SERAP emphasizes that the judgment implicitly requires the immediate accounting for and return of these funds, which have been retained and allegedly misused by state governors and the FCT minister.
According to SERAP, accounting for and returning the local government funds will build trust in democratic institutions and strengthen the rule of law. It also urges the National Assembly to urgently amend Section 162 of the Nigerian Constitution (1999, as amended) to ensure that local government allocations from the Federation Account are directly paid to local government areas rather than being collected by state governors and the FCT minister.
SERAP’s call to action includes a seven-day ultimatum for the governors and the FCT minister to account for and return the funds meant for local governments. Failure to comply within this timeframe will prompt SERAP to consider appropriate legal actions to compel them to adhere to this request, which is in the public interest.
The organization argues that returning these funds will alleviate poverty, improve access to basic public goods, and enhance the capacity of local governments to effectively discharge their constitutional and statutory responsibilities. This is particularly crucial in a country where local governments play a significant role in providing essential services and infrastructure at the grassroots level.
Former President Muhammadu Buhari had previously highlighted the issue of misappropriation of local government funds. In December 2022, he revealed that substantial portions of the funds meant for local governments were being diverted. Buhari stated that if the allocation from the Federation Account to a state was N100 million, only N50 million would reach the local government chairman, who would then sign for the full amount of N100 million. The remaining balance would be pocketed by the chairman and shared with others involved in the scheme.
This disclosure by the former president underscores the severity of the issue and the need for immediate corrective measures. Over the years, the 36 states in Nigeria and the FCT have reportedly collected over N40 trillion in federal allocations meant for the 774 local government areas in the country. For instance, in November 2023 alone, the Federation Account Allocation Committee (FAAC) disbursed N225.21 billion to states, meant for local governments. In December 2023, states collected N258.81 billion in federal allocations meant for local government areas.
These staggering figures highlight the scale of the funds in question and the potential impact of their misappropriation on local governance and development. The mismanagement of these funds has far-reaching consequences, depriving local governments of the resources needed to provide essential services such as healthcare, education, and infrastructure development.
SERAP’s demand for accountability and the return of local government funds is not just a call for financial restitution but also a push for systemic change. It seeks to ensure that funds allocated for local development are used for their intended purposes, thereby promoting transparency, accountability, and good governance.
The Supreme Court’s ruling and SERAP’s subsequent call to action mark a pivotal moment in Nigeria’s fight against corruption and the mismanagement of public funds. By holding state governors and the FCT minister accountable for the local government funds they have collected, Nigeria can take a significant step towards improving governance, enhancing public trust, and ensuring that resources are used to benefit the people they are meant to serve.
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