The resolve by Federal Government to start paying monthly allocations directly to local governments has come up against a fresh problem.
The government resolution is in compliance with the decision of the Supreme Court judgment made about six months ago: that councils should be paid their monthly allocations directly, instead of the prevailing method which is through states.
Some state governors moved against the judgment by words and by deeds, while another hinderance to the verdict execution is local governments not having accounts with the Central Bank of Nigeria.
Fresh report said each of the 774 local governments is now required to furnish the CBN with a comprehensive audit of its finances for two years as a prerequisite for direct remittance of their allocations.
This new news is told by The Nation, citing an unnamed source in the apex bank.
It said, the process to open accounts with the CBN is on but the new hurdle is the ability of the LGs to submit the two-year audit reports demanded by the apex bank before the February meeting of the Federation Account Allocation Committee (FAAC) in Abuja where the allocations are made.
“We cannot just open fresh accounts for the LGAs when many of them have not operated as an independent government entity,” the publication quoted the source as saying.