LG Funds: Why Direct Allocation Remains Elusive – Abia ALGON

 

The Association of Local Governments of Nigeria (ALGON), Abia State chapter, has explained why federal allocations meant for councils are still being channelled through the Joint Account Allocation Committee (JAAC) instead of going directly to the local government areas.

Abia ALGON Chairman, Chinedu Ekeke, said the Federal Government was yet to fashion out a workable framework for implementing the Supreme Court judgment granting financial autonomy to local governments.

Ekeke spoke on Friday at Government House, Umuahia, while responding to allegations by an opposition chieftain that Governor Alex Otti was diverting funds meant for grassroots development.

He dismissed the claim, insisting that no council in the state was being starved of resources.

According to him, allocations from the Federation Account still pass through JAAC because the existing financial structure has not been altered.

“On the Supreme Court judgment, local governments are funded from the JAAC accounts because that is where the money is paid into. The funds do not come directly to the councils,” he explained.

“The Federal Government is probably still working out the best way to handle the new arrangement.”

Speaking on behalf of the 17 council chairmen, Ekeke maintained that the relationship between the state government and the councils remained cordial, adding that ongoing projects across rural communities were evidence that funds were being judiciously utilised.

He urged politicians to refrain from politicising local government finances, noting that the transition to full autonomy required administrative and legislative adjustments at the national level.

The ALGON boss expressed optimism that a clear template would soon emerge to give effect to the apex court ruling and strengthen governance at the grassroots.