Local government chairmen in Ondo State have accused Governor Lucky Aiyedatiwa’s administration of withholding and diverting funds meant for the 18 councils, despite the Supreme Court’s July 2024 judgment granting financial autonomy to local governments.
The council bosses alleged that although billions are allocated to their councils monthly by the Federation Account Allocation Committee (FAAC), they only receive about ₦4 million each to run their affairs. They insist that allocations are still routed through the controversial state–local government joint account instead of being paid directly into council treasuries as ordered by the court.
One chairman, who spoke anonymously, said:
“In June, some councils received as much as ₦644 million, ₦590 million, and ₦405 million according to BudgIT records. Yet, after deductions and directives, we were left with just ₦4 million to manage our councils.”
The chairmen lamented that six months into their tenure, they have been unable to embark on meaningful projects due to financial restrictions, stressing that the practice undermines service delivery, grassroots governance, and the spirit of the Supreme Court ruling.
ALSO READ: ‘I Know Where Bandits Are, But Security Agents Take Orders from Abuja’ – Zamfara Governor
Meanwhile, the Association for Good Governance Advocacy (AGGA) has urged President Bola Tinubu to enforce compliance with the judgment, insisting that aside from Lagos, no state allows local governments full financial autonomy. The group described the situation as a major barrier to development at the grassroots.
In its statement, signed by Coordinator Mrs. Folakemi Benson, AGGA said:
“Local governments are the closest tier of governance to the people. Without financial autonomy, they remain crippled, unable to provide essential services in line with the Renewed Hope Agenda.”
Government’s Response
Ondo State Commissioner for Local Government and Chieftaincy Affairs, Amidu Takuro, dismissed the allegations as false and politically motivated. He maintained that all council funds are intact, open for verification, and disbursed based on council-approved budgets.
On the claim that councils were capped at ₦4 million monthly, Takuro said:
“That is not true. The money is in their accounts, and anyone can verify. Statutory deductions cover salaries of teachers, local government staff, and pensioners. We have also cleared gratuity arrears from 2010 to 2013, totaling about ₦3.8 billion.”
Takuro reiterated that the state’s vision was to ensure efficient local government administration, stressing that councils must remain responsible and responsive to their people.
Supreme Court’s Landmark Ruling
In its July 11, 2024 decision, the Supreme Court declared it unconstitutional for state governments to retain or manage local government allocations, ruling that funds must be paid directly into LGA accounts. The court also outlawed the use of caretaker committees and warned governors against dissolving elected councils.
The judgment, hailed as a victory for grassroots democracy, was expected to end decades of state interference in council finances. The Federal Government subsequently directed the CBN to open accounts for all 774 LGAs to facilitate direct disbursements.
However, resistance from several state governments—including Ondo—has stalled full implementation, with civil society groups now demanding stricter enforcement to safeguard local democracy and development.
