Constitutional reforms must begin with LG financial autonomy-Fagge

A Senior Advocate of Nigeria (SAN), Abdul Adamu Fagge, has submitted a strategic memorandum to the Constitution Review Committee, calling for urgent reforms to guarantee the financial independence of Nigeria’s 774 local government areas.

In the memorandum dated July 24, 2025, and titled “Achieving Full Autonomy for Local Government in Nigeria: A Realistic and Strategic Approach,” submitted to the constitution review committee at NorthWest Zonal Public Hearing holding in Kano, Fagge outlined a detailed proposal advocating the establishment of the Office of the Accountant General in each local government area as a first step toward dismantling what he described as structural financial dependence on state governments.

SolaceBase reports that Fagge emphasized that although local governments are constitutionally recognized as the third tier of government, they remain financially constrained due to the operation of the State Joint Local Government Account (SJLGA), political interference by state governors, and weak internal financial management systems.

According to him, this dependency has significantly hampered development at the grassroots, eroded democratic governance, and distorted the nation’s federal structure.

He proposed the statutory creation of the Office of the Local Government Accountant General (AG-LG), with the legal mandate to manage public funds independently and professionally.

The proposed office, he explained, would enhance transparency, strengthen internal accountability, ensure timely financial reporting, reduce external political interference, and ultimately transfer financial control to democratically elected local councils.

Fagge noted that this reform could be implemented immediately without a constitutional amendment, as it can be introduced through federal legislation or directives from relevant national regulatory bodies.

Referencing the 2024 Supreme Court ruling in Attorney General of Rivers State & Ors v. Attorney General of the Federation, Fagge highlighted the Court’s interpretation of Section 162(6) of the 1999 Constitution, which previously mandated the existence of the SJLGA.

The Court clarified that the provision is directory rather than mandatory, indicating that states are no longer constitutionally required to operate the joint account structure.

This, he argued, opens the door for direct allocations to local governments and the eventual dismantling of the SJLGA, thus restoring fiscal autonomy at the third tier of government.

To support this new direction, Fagge proposed a constitutional amendment to Section 162 that would formally establish the office of the Accountant General in each local government and mandate the creation of individual treasury accounts credited directly from the Federation Account.

He also recommended that local councils be empowered to appoint their Accountant Generals and manage their finances in line with national auditing standards.

Additionally, he advocated for an amendment to Section 7 of the Constitution to give local councils legislative powers to make laws and regulations for good governance, budgeting, revenue, procurement, expenditure, audit, and financial reporting.

He stressed that such powers must be protected from interference by state governments.

Fagge further recommended supporting reforms to consolidate these proposals. These include abolishing the SJLGA entirely, creating independent audit committees at the local level, prohibiting the use of caretaker committees in place of elected councils, ensuring phased compliance with International Public Sector Accounting Standards (IPSAS), deploying a nationwide digital financial platform for LGAs, and enacting a Local Government Fiscal Responsibility Law modeled after the 2007 Fiscal Responsibility Act.

According to him, these measures will not only ensure transparency and efficiency but also empower local governments to deliver critical services to their communities without undue interference.

He warned that delays in implementing these reforms would lead to the continued deterioration of rural infrastructure, growing public distrust in local institutions, mismanagement of public funds, and increased insecurity, particularly in underserved and poorly governed communities.

Fagge argued that instituting robust financial oversight at the local government level would mark a decisive step toward genuine grassroots development and democratic growth.

In conclusion, he described the proposal as both realistic and actionable, stressing that it offers a scalable model for reform that does not rely solely on constitutional change.

He also expressed willingness to provide further technical input or appear before the Committee to elaborate on the proposed framework.