Reports indicate that state governors have begun lobbying to postpone the implementation of the Supreme Court ruling on the disbursement of federal allocations to local government councils.
During a meeting with President Bola Tinubu at the State House in Abuja last Tuesday, some governors reportedly used the occasion of the Iftar dinner to persuade the President and reopen discussions on direct allocations to the councils, which have faced delays, according to Presidency sources cited by The Punch.
The source further revealed that the governors opposed routing LG allocations through the Central Bank of Nigeria, arguing that the issue of multi-billion-dollar debts allegedly incurred by the councils needs to be addressed first.
“When the governors came on Monday for Iftar, they sought to meet the President, which they did on Tuesday afternoon.
“Some of the governors came to meet the president. They were there with him for long. They left around past six that evening,” the source disclosed.
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Speaking on condition of anonymity because he was not authorised to speak on the matter, another official privy to the details, explained further, “They finally met the President on Tuesday to try to find a solution. They are jostling for a favourable outcome.
“What is happening are two things. The Federal Government wants the allocations paid to the CBN, and all local government areas should open an account with the CBN.
“But the governors said no. They don’t want it that way. They said if the money goes to the CBN, it is as good as the Federal Government still controlling the whole thing.”
A source familiar with Tinubu’s discussions with the governors disclosed that the state executives preferred the disbursements to be made into commercial bank accounts instead.
“One of the governors said that with the CBN handling the account, they would need approval from the Accountant-General. That means it is still under FG’s control, and they don’t want it that way. They want it to go to commercial banks. But the FG is saying no,” the source stated.
On the outcome of the meeting, the official revealed, “They said the meeting was positive. But I don’t know what they agreed upon.
“It appears they are working with some officials to find a way out. But the main thing is that the local government allocation was being withheld. It has not been paid. And it is because of this.”
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