Audit Report Controversy Erupts As LG Chairmen Deny CBN Orders

Audit Report Controversy Erupts As LG Chairmen Deny CBN Orders

Local government chairmen and commissioners in various states have refuted claims of receiving directives from the Central Bank of Nigeria (CBN) to submit two-year audit reports as a prerequisite for opening accounts to facilitate direct fund disbursement from the Federation Account Allocation Committee (FAAC).…….READ MORE 

The CBN allegedly made this request to comply with the Supreme Court’s ruling granting financial autonomy to local governments. Media reports suggested that councils were unable to receive their direct allocations last month due to non-compliance with these audit submissions.

However, the Ekiti State government clarified that no such communication was received from the CBN regarding the submission of audit reports for their 16 local government areas. Speaking with Leadership Sunday in Ado-Ekiti, the Commissioner for Information, Hon. Taiwo Olatunbosun, confirmed that no formal correspondence from the CBN had been made to the state or its agencies.

“It’s unlikely that the CBN would bypass proper procedures and directly communicate with local councils without involving the state authorities. To date, we have received no such instructions,” Olatunbosun stated.

The commissioner also emphasized that Governor Biodun Oyebanji’s administration maintains a transparent fiscal policy, ensuring that local governments retain full control over their funds.

Meanwhile, an insider from a local council’s Finance and Administrative Department suggested that they were still awaiting the Auditor-General’s audited reports to proceed with the CBN’s requirements for account openings.

In contrast, Plateau State Commissioner for Local Government and Chieftaincy Affairs, Hon. Euphriam Usman, and several other officials expressed ignorance of any such directive from the CBN.

However, Dambatta LGA Chairman in Kano State, Hon. Jamilu Abubakar, confirmed receiving instructions from the Ministry of Local Government and Chieftaincy Affairs to submit detailed expenditure reports alongside bank statements.

Legal experts and civil society leaders weighed in on the issue. David Babajide, director of Justice and Human Rights Reforms Initiatives (JHRRI), supported the call for audits, emphasizing that transparency in public fund management is non-negotiable.

“Auditing is a legal obligation, and the CBN’s directive is within its jurisdiction to ensure accountability,” Babajide noted.

On the other hand, Lagos-based lawyer Emeka Okezie criticized the Federal Government for the confusion surrounding the implementation of the Supreme Court’s ruling.

“The CBN cannot hinder the enforcement of the Supreme Court’s judgment. However, local governments must meet legal requirements before accessing their funds,” Okezie argued.

In contrast, senior lawyer Ugwuzor Adindu insisted that the CBN lacks the authority to withhold FAAC allocations once disbursed, citing constitutional provisions and relevant Supreme Court judgments.