N40 Trillion LGA Allocations Unaccounted For.
The Socio-Economic Rights and Accountability Project (SERAP) has called upon the 36 state governors of Nigeria and the Minister of the Federal Capital Territory, Abuja, Mr. Nyesom Wike, to disclose the details of federal allocations intended for local governments in their respective states and the FCT. This request includes the actual disbursement of these allocations since the inception of democracy in 1999.
Furthermore, SERAP urges these officials to invite the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC) for an investigation into the disbursement and utilization of federal allocations meant for local governments since May 1999.
Former President Muhammadu Buhari, in December 2022, highlighted corruption in these allocations. He stated that if the Federation Account disbursed N100 million to a state, only about N5 million might reach the local government chairman, who would acknowledge receiving the full amount, with the balance being misappropriated.
SERAP expresses deep concern over the longstanding allegations of corruption and mismanagement of federal allocations to local governments, which have significantly contributed to poverty, underdevelopment, and limited access to public goods and services in many states.
Despite Nigeria’s vast oil wealth, ordinary citizens have seen minimal benefits due to widespread grand corruption and a culture of impunity among perpetrators. Addressing this corruption in local government allocations could alleviate poverty, improve access to basic public goods, and enhance local governments’ ability to fulfill their constitutional and statutory responsibilities.
According to SERAP’s data, the 36 states and the federal capital territory, Abuja, have received over N40 trillion in federal allocations for the 774 local government areas and the FCT. In November 2023 alone, the Federation Account Allocation Committee (FAAC) disbursed N225.21 billion for local governments, followed by N258.81 billion in December 2023.
However, there is a lack of transparency in the actual disbursement of these allocations. States and the FCT have consistently failed to disclose the amounts disbursed by state governors.
Former President Buhari also accused state governors of routinely embezzling or diverting funds intended for local governments. He alleged that if a state received N100 million from the Federation Account, only about N5 million might be given to the local government chairman, with the remainder being misappropriated.
The Nigerian Constitution of 1999 (as amended), in Section 162(6), mandates each state to maintain a ‘State Joint Local Government Account’ for all allocations from the Federation Account and the state government. Section 162(5) ensures that these funds are allocated to the states for the benefit of their local government councils.
Moreover, Section 13 of the Constitution places a responsibility on each state to adhere to and apply the provisions of Chapter 2 of the Constitution. SERAP notes that Section 15(5) mandates public institutions to eradicate all corrupt practices and abuse of power, while Section 16(2) stipulates that the nation’s material resources should be harnessed and distributed for the common good.
Under the UN Convention against Corruption, to which Nigeria is a signatory, the country has legal obligations to ensure accountability in public resource management. Articles 5 and 9 of the Convention impose legal obligations on states to manage public affairs and funds properly.
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