LG Financial Autonomy: Dedicated account with CBN, crucial mechanism to combat financial malfeasance – Ohanaeze Ndigbo

Ohanaeze Ndigbo Worldwide, says the Federal Government's recent directive, mandating the 774 Local Government Councils in Nigeria, to establish dedicated accounts with the Central Bank of Nigeria, CBN for direct allocations from the Federation Account, is a crucial mechanism to combat the financial malfeasance that has historically plagued local governance in the country.

The Apex Igbo Sociocultural Organization, made the assertion in an electronic statement sent to Fresh Angle International, Thursday January 23.

In the statement, which was e-signed by its Deputy President-General, Ohanaeze Ndigbo, Mazi Okechukwu Isiguzoro, the Igbo group, warned: “The Apex Igbo Sociocultural Organization, Ohanaeze Ndigbo, hereby issues a resolute and unequivocal statement underscoring the perils associated with the diversion of Local Government Area (LGA) funds for personal gain by Governors.

“This warning is not merely a formality; it is a declaration of our commitment to integrity, accountability, and the rule of law within our local governance structures. We are issuing this cautionary note to all LGA Chairmen across the 774 councils in Nigeria, with a heightened focus on the 95 councils located in the Southeast region.

“In light of the Federal Government's recent directive mandating all LGAs to establish dedicated accounts with the Central Bank of Nigeria (CBN) for direct allocations from the Federation Account, we recognize this as a critical and transformative measure. This policy not only aligns with the Supreme Court ruling advocating for direct disbursement to the councils, but also serves as a crucial mechanism to combat the financial malfeasance that has historically plagued our local governance. Ohanaeze Ndigbo regards this development as a significant stride toward promoting transparency and responsible governance at the grassroots level.

“To the Chairmen of the 95 LGAs in the Southeast, we emphatically remind you that adherence to the guidelines set forth by the Nigerian Financial Intelligence Unit (NFIU) is not optional. The NFIU has been tasked with the vigilant monitoring of the utilization of these funds, ensuring compliance with the principles of transparency, accountability, and good governance. Deviations from these standards will be met with severe legal repercussions.

“Ohanaeze Ndigbo, in its unwavering commitment to uphold the integrity of our communities, is prepared to collaborate closely with a team of anti-corruption agents drawn from the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC). Our united front aims to scrutinize any actions taken by Southeast LGA officials, who may act as conduits for Governors seeking to siphon LGA funds for personal purposes. We wish to be abundantly clear: engaging in such illicit activities will not only lead to prosecution, but could result in imprisonment.

“The Chairmen of LGAs in our region must recognize the peril that lies in unprincipled alliances with Governors. Any LGA official, who participates in the diversion of council funds, engages in reckless spending, or fails to honor financial obligations to essential local worker unions—such as the National Union of Local Government Workers (Nigeria Union of Local Government Employees, NULGE) and the Nigerian Union of Teachers—will face the full weight of legal action. No promises or assurances from Governors will provide a shield against the consequences of such misconduct; accountability will prevail.

“Moreover, we wish to assure the public that Ohanaeze Ndigbo has constituted a dedicated auditing committee focused on monitoring the flow and disbursement of funds available to the Southeast LGAs. Our concerted efforts aim to dismantle the pervasive culture of looting that has tarnished the reputation of our regional governance. It is imperative for Southeast ALGON Chairmen to understand that any legislative attempts by certain Governors to work with members of the State House of Assembly to pass laws that would enable unrestricted access to these funds will be met with fierce legal challenges. There will be no immunity for those attempting to evade independent probes into LGA accounts.

“We call upon all LGA Chairmen to uphold ethical leadership and prioritize the interests of their constituents, over personal gain. The era of corruption and mismanagement must be decisively brought to a close. We stand united in our commitment to fostering an environment of transparency and accountability, as we diligently work toward the progress and development of our cherished communities.”

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