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FG Takes Strong Stance Against State Interference in Local Govt Funds

The Nigerian Federal Government has vowed to put an end to the longstanding practice where state governments meddle with funds meant for local governments. This commitment was emphasized by Mohammed Shehu, Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), during a budget review session with the House of Representatives’ Committee on Finance in Abuja.

Shehu expressed frustration over how states consistently undermine the financial independence of local councils, stressing that the commission is now determined to enforce autonomy at the grassroots level. He revealed plans to revive a Local Government Committee to monitor allocations, a move previously blocked by legal challenges.

"The Supreme Court once called us busybodies for trying to oversee these funds, but now we’re ready to track every kobo going to the 774 local governments," Shehu said. He also praised President Bola Tinubu for directly warning governors against obstructing local government autonomy, even threatening executive action if necessary.

Reflecting on the decline of local governance, Shehu noted, "Decades ago, even under military rule, local councils performed better. Today, their dysfunction is at the root of many national crises—failed primary healthcare, crumbling schools, and absent infrastructure."

The RMAFC chairman credited the House Finance Committee, led by Lagos representative Abiodun Faleke, for elevating the commission’s influence. "Before, agencies ignored us. Now, they seek our input—Customs, oil regulators, and others are finally cooperating to resolve long-standing revenue disputes," he added.

Shehu also shared updates on key projects: an audit of Niger Delta oil assets and a near-finalized revenue allocation formula for federal, state, and local tiers, including revised pay structures for political officeholders. "The new remuneration package for ministers and others is already with the President. Yours [lawmakers] won’t need legislation—it’s straightforward," he clarified.

Faleke commended the RMAFC’s efforts to boost national revenue but underscored the deeper issue: for years, state governors have exploited the "Joint Account" system to divert or withhold local funds, crippling grassroots development. Despite constitutional recognition, councils remain financially strangled, fueling rural poverty and governance failures.

With recent Supreme Court rulings and federal threats of executive orders, the battle for local autonomy has gained momentum. Observers warn that without enforceable safeguards, pledges of reform may yet another empty promise in Nigeria’s struggle for equitable governance.