[The Polity With Senator Reformed] What Next on LG Financial Autonomy? — By Senator Reformed

As the bus rumbled along a road scarred with potholes, the passengers shifted uncomfortably in their seats, prompting a middle-aged man to turn to his neighbour, saying, “If only the local government were more active, this road wouldn’t be in such a terrible state. We wouldn’t have to endure this every day.”

His words definitely struck a chord with me and the rest of the passengers, who nodded in agreement, lamenting that local governments, which should be the primary support system for communities, often fail in this fundamental responsibility of addressing infrastructure and service needs effectively.

Again, the ensuing conversation lends credence to the importance of effective local governance, showing the need for local governments to be empowered to address everyday challenges faced by their communities, which is precisely what the recent Supreme Court ruling granting financial autonomy to local governments aims to achieve.

On July 11, 2024, the Supreme Court of Nigeria delivered a commendable ruling that granted financial autonomy to the 774 local government areas of the federation, occasioning a great shift in the administrative terrain of the third tier of government, as it allows the LGAs to now manage their own finances independently of state governors.

The landmark ruling was one to reshape the way local governance operates and offer renewed hope for more effective and responsive administration at the grassroots level.

According to many political pundits, the final verdict from the Supreme Court represents a crucial win for decentralization, as, with the financial autonomy granted to the LGAs, these local entities will now be emboldened to make bold decisions tailored to their specific needs, signifying a move away from a top-down approach, where state governors had control over local funds which often leads to delays and inefficiencies.

Also, the judgment will ensure that local issues are addressed more promptly and effectively, as funds can now be managed directly by those closest to the communities they serve—perhaps with this, we the frustrated and murmuring passengers can now begin to expect the local government to finally show up in our domain.

Having said that, another benefit of financial autonomy is that it will considerably enhance governance across the nation, in that, the LGAs, with direct control over their budgets, can begin to prioritize and implement projects that directly benefit the residents as this newfound control over resources will definitely lead to more efficient fund management and reduce the bureaucratic red tape that previously impeded progress. Sufficient to say hence that the people at the local level should begin to expect better service delivery and a more responsive administration.

It is important to mention that one of the most impactful aspects of this ruling is the shift to direct allocation of funds, as previously, funds meant for local governments were often channeled through state governors, who could withhold or divert resources.

Now, with financial autonomy, funds will be allocated directly to LGAs, ensuring that resources reach their intended destinations without unnecessary delays or interference. This laudable development has been lauded by many for enhancing transparency and accountability, as local authorities will be directly responsible for managing and utilizing these funds.

With the Supreme Court’s ruling setting the stage for a new era of local governance, the pressing question is: what comes next? While some governors have already shown a willingness to comply with the ruling, others are still indifferent; however, it is imperative to state that all state leaders must embrace this change and, as a matter of exigency, do the needful.

For LGAs to truly fulfill their potential as engines of grassroots development, governors must respect the Supreme Court’s decision and allow local governments to operate with the financial independence they have been granted.

Local Government chairmen must also rise to the occasion as this autonomy presents a golden opportunity to rejig local administration and address the pressing needs of communities.

This is even as it is crucial that funds are allocated judiciously and transparently to ensure they benefit the masses rather than being squandered or misused.

The local governments must now step up to the challenge and demonstrate their capability to manage resources effectively and deliver on their promises to the electorate.

While the Supreme Court’s ruling on financial autonomy indeed marks a historic step forward towards empowering local governments, its success will depend on the commitment of both state governors and local authorities to uphold and implement the decision.

Moving on, the local government election process should also be made fairer and freer by establishing an independent body to conduct the elections. The current Senate move to establish a commission for this purpose is misguided as this requires amending the constitution to empower an independent electoral commission, rather than relying on state electoral commissions. With an independent body overseeing local government elections, local governments will become desirable and effective tier of government, and equally be freed from the control of state governors, who currently wield significant influence over them at the detriment of good governance.

As the nation therefore moves forward, the focus must remain on ensuring that this newfound autonomy translates into tangible improvements in the lives of ordinary Nigerians so that the promise of grassroots democracy can indeed come into fruition, and its dividends enjoyed by all and sundry.

 

 

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