Local government chairmen in Ondo State have raised serious concerns, accusing Governor Lucky Aiyedatiwa of denying them access to funds required to effectively manage their respective councils. This allegation comes despite the Supreme Court’s ruling of July 2024, which granted financial autonomy to local governments across Nigeria.

According to the council bosses, the state government has continued to withhold a substantial part of their monthly allocations from the Federation Account Allocation Committee (FAAC), leaving them financially handicapped.

Alleged Diversion of Allocations

Revealing the details of the situation in Akure, the state capital, some local government chairmen, who requested anonymity due to the sensitivity of the issue, explained that only ₦4 million out of the ₦600 million allocation is released to them. The rest is reportedly channeled back into the Ministry of Local Government’s account on the directive of the state government.

One of the chairmen said:

“We are compelled to return most of the allocation to the Ministry of Local Government, leaving us with just ₦4 million to run our councils. For example, in the June FAAC disbursement, some local governments received ₦644 million, ₦590 million, and ₦405 million, but what got to us was only a token. This can be verified from credible public sources like the BudgIT platform.”

Fear of Being Tagged Disloyal

The chairmen expressed reluctance to confront Governor Aiyedatiwa directly, fearing that they may be branded as disloyal within the political structure. They further disclosed that the state government justifies its actions by citing financial responsibilities such as primary healthcare, basic education funding, and the operation of the Amotekun security outfit.

Government’s Reaction

In response, the Commissioner for Local Government and Chieftaincy Affairs, Amidu Takuro, dismissed the allegations, describing the chairmen as insincere. He insisted that the arrangement was well known to all parties and was a collective agreement rather than an imposition.

Takuro stated:

“If anyone is not comfortable with the arrangement, they should come out openly. We are all members of the same political party, working under one leadership. What the government has been doing is based on a collective decision, not an enforcement.”

Broader Implications

This controversy sheds light on the persistent challenge of local government autonomy in Nigeria, where state interference in council finances remains a major obstacle. Despite the Supreme Court’s landmark ruling, the practical implementation of true financial independence for local governments continues to face resistance.

The outcome of this standoff between the Ondo State Government and local council chairmen may set a precedent for other states grappling with similar disputes over FAAC allocations and fiscal autonomy.