FG targets LG fund diversion with criminal actions, cites Supreme Court judgment

The Federal Government has announced its determination to prosecute elected officials who collaborate with state governors to divert allocations intended for Nigeria’s 774 local government areas (LGAs).

This decision, rooted in a Supreme Court judgment granting financial autonomy to LGAs, was revealed by the Attorney-General of the Federation (AGF) and Minister of Justice, Prince Lateef Fagbemi (SAN).

Speaking at the 2024 Annual General Conference of the Abuja Chapter of the National Association of Judiciary Correspondents (NAJUC), Fagbemi described the diversion of local government funds as not only illegal but also an impeachable offense.

He criticized state governors for orchestrating the placement of loyalists in LGA leadership positions through compromised electoral processes.

While acknowledging that the Federal Government lacks the constitutional authority to interfere in local government elections, Fagbemi emphasized that it would hold elected LGA officials accountable if they mismanage funds allocated from the federation account.

The AGF expressed frustration over the deplorable state of many local government secretariats across the country, citing instances where basic expenditures required gubernatorial approval.

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“The situation was such that even when the secretariat needed to buy stationeries, you had to notify the governor in advance to spend your money,” he said.

Fagbemi dismissed arguments about the supposed immaturity of local government officials to manage funds, challenging state governors to allow LGAs to function autonomously.

He warned local government officials that while governors may enjoy constitutional immunity, they do not. “It is very easy for you to get yourself to Kuje or other prisons spread across Nigeria,” he cautioned.

The AGF lauded President Bola Tinubu for resisting political pressure and upholding financial autonomy for local governments, describing Tinubu’s stance as a commitment to protecting all Nigerians, including those in LGAs.

Fagbemi also hinted at potential legal challenges to the powers of state governments to conduct area council elections. “We will not hesitate to file another action if the need arises,” he said.

This decisive move by the Federal Government underscores its commitment to addressing the persistent issue of financial mismanagement at the local government level and ensuring that funds meant for grassroots development are used as intended.