LG Autonomy: Governors To Lose Control Of N2tr Annually By: NSE ANTHONY-UKO on July 26, 2013 - 9:37pm inShare Governors of the 36 states of the federation are likely to lose control of more than N2.2 trillion revenue yearly, which accrues to the 746 Local Government Areas (LGAs) and oil producing communities from the Federation Account if the planned autonomy to LGAs and the clamour for direct payment of the 13 per cent derivation funds to oil producing communities become a reality. In the last one year alone, all the state governors have controlled an estimated N1.53 trillion revenues, being the LGAs share of allocation from the federation account which was paid directly to the governors rather than the LGs, data compiled by LEADERHSIP have shown. In addition to this, governors of the oil producing states have being controlling more than N565.86 billion paid to them as the 13 per cent derivation funds, rather than directly to the oil producing communities as stipulated in the constitution. These figures are besides the other allocations accruing to the LGs and oil communities from draw downs from the Excess Crude Account (ECA) which when added together further increases the revenues of the LGs and oil communities currently controlled by the state governors by another N200 billion. The House of Representatives on Wednesday, after its votes on the amendment of the 1999 Constitution, granted autonomy to local government by altered the contentious Section 162 of the 1999 Constitution, which abrogated State Joint Local Government accounts and empowered each local government to maintain its own special account to be called “Local Government Council Allocation account.” This move has now put elected local government chairmen in direct control of their allocation from the Federal Government rather than to the state governors
Posted on: Sat, 27 Jul 2013 13:06:48 +0000
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