Missing Money, Missing Progress: Ogbeh Calls for Local Government Reform
By Patience Ikpeme
Former Minister of Agriculture and one-time PDP National Chairman, Chief Audu Ogbeh, has ignited a firestorm with his scathing critique of local government funding in Nigeria.
Ogbeh, speaking on Channels TV’s “Inside Sources,” expressed deep concern about the lack of tangible benefits from federal allocations directed towards local governments (LGs). He pointed out the absence of improvements in basic services like primary schools, despite ongoing disbursement of funds.
He challenged the practice of paying monthly allocations to states that utilize caretaker committees to manage LG administrations. He argued that caretaker committees, often deemed illegal by the Supreme Court, lack legitimacy and are unable to ensure proper utilization of funds. He urged the federal government to withhold funds from states with such non-elected LG leadership.
Ogbeh highlighted the challenges posed by powerful state governors who allegedly control and mismanage LG funds. He described a system where governors appoint loyalists as caretaker LG chairmen, providing them with minimal stipends while diverting the bulk of allocated resources for unclear purposes.
The former PDP National Chairman advocated for a shift away from joint accounts, where state and local government funds are co-mingled. He called for dedicated accounts solely controlled by LG administrations. This, he argued, would improve transparency and accountability in local government spending.
Ogbeh emphasized the vital role of a functional LG system in addressing basic needs. He believes a well-functioning LG system could tackle issues like providing clean water, curbing infectious diseases, maintaining schools and healthcare facilities, and delivering essential services to citizens.
He emphasized the growing anger and resentment brewing at the grassroots due to the perceived mismanagement of LG funds. He presented two options: either reform the LG system to ensure its functionality or abolish it entirely if deemed unsalvageable.
Ogbeh’s call for reform has reignited longstanding debates about local government autonomy in Nigeria. His critique resonates with President Bola Tinubu’s stance on the issue, and the recent lawsuit filed by the Federal Government against state governors over alleged LG fund mismanagement.
The current revenue allocation formula, with LGs receiving 20.60% of the national pie compared to 52.68% for the federal government and 26.72% for states, could be revisited. Furthermore, discussions on restructuring the revenue disbursement system and strengthening oversight mechanisms are likely to gain renewed momentum.
Ogbeh’s comments offer a stark reminder of the challenges hindering progress at the local level. Whether through structural reforms or more robust accountability measures, addressing these issues is crucial for ensuring that resources reach the communities that need them most.
