A pressure group, Peasant Empowerment Concern Initiative (PECi), has called on the federal government to immediately freeze the accounts of state governments obstructing the direct allocation of funds to local government councils.
In a statement issued in Abuja on Sunday, the group alleged that 35 state governments are deliberately blocking the financial autonomy of local governments, with only Delta State reportedly complying with the Central Bank of Nigeria (CBN)’s directive to open dedicated accounts for local councils.
The statement, jointly signed by PECi’s National Coordinator, Senator Ita Enang, and Publicity Secretary, Mr. Osita Okechukwu, warned that the refusal of states to comply poses a serious threat to President Bola Ahmed Tinubu’s local government financial autonomy initiative.
PECi cautioned that the ongoing violation of the CBN directive could hinder rural development, undermine grassroots democracy, and stall the empowerment of millions of peasants who reside in Nigeria’s rural communities.
On July 14, 2024, the Supreme Court in a landmark judgment granted financial autonomy to the 774 local government councils in Nigeria, which was followed up by the directive that all local government councils shall open domiciliary account with CBN.
The group further argued that the peasant empowerment and development gains intendment of local government financial autonomy, being blocked by the State Governors will further impoverish the citizenry, fuel urban migration, kidnapping and spread rural diseases.
It frowned at the intimidation and coercion strategy allegedly adopted by the Governors, who cynically prefer commercial banks domiciliary accounts lodgment easy to manipulate more than CBN accounts that is out of their control.
PECi then challenged all progressives to join hands to give life to financial autonomy of local government councils; as the only toolkit to stop State Governors who for 25 years have converted it to slush funds, thereby sabotaging the development of rural areas.
The group reminisced on how the EFCC up to date unfortunately is still burdened with the trial of many State Governors who pilfered local government funds for personal gains.
Lamenting over the development, the group said “it would be untoward and regrettable that after Nigerians had jubilated with the liberation of local government funds, with this progressive policy, that Nigerians are still held hostage by State Governors who for 25 years frustrated the amendment of the 1999 Constitution in favour of local government autonomy.”
PECi submitted that mismanagement of local government councils funds for personal gains over the years have stifled democracy and sabotaged peasants empowerment at the grassroots level, hence watered down Mr President’s milestone legacy.
The NGO, therefore, appealed to Mr President to as a matter of urgent national importance to freeze the accounts of State Governments that obstruct direct allocation of funds to local government councils, so as to accelerate the development of our rural areas and our deepen our democracy at grassroots level.
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