ALGON BoT Raises Alarm Over CBN Control Of Local Government Accounts, Asks AGF To Intervene

• Local government workers via the Board of Trustees of the Association of Local Governments of Nigeria have opposed domiciling their funds with CBN
• ALGON BoT stressed that the move will expose the funds to fraudulent orders, freezing their funds
• They asked the Attorney General of the Federation to reject the keeping of the local government funds the apex bank

The Board of Trustees (BOT) of the Association of Local Governments of Nigeria (ALGON) has strongly opposed the recommendation that revenue allocation accounts for Nigeria’s 774 Local Government Areas (LGAs) be domiciled with the Central Bank of Nigeria (CBN).

In a letter signed by its Secretary General, Mohammed I. Abubakar on Thursday, March 6, 2025, the ALGON BoT called on the Attorney General of the Federation (AGF) to intervene and uphold the intention of Section 162(5)(6)(7)(8) of the 1999 Constitution, as amended, by ensuring that Local Government revenue accounts remain under commercial banks rather than the CBN.

ALGON accuses CBN of causing hitches

The BoT warned that allowing the CBN to control these funds would create unnecessary bureaucratic obstacles and expose Local Government allocations to fraudulent garnishee orders by individuals and groups claiming to be creditors of ALGON and Local Governments. 

Read also:

Breaking Doyin Okupe Expresidential Aide Is Dead Details Emerge

The letter, titled "Application/Plea to Uphold the Intention of the Draftsman in Section 162(5)(6)(7)(8) of the Constitution of the Federal Republic of Nigeria, 1999 (As Amended)," was written in response to ongoing deliberations by a sub-committee of the Secretary to the Government of the Federation’s (SGF) Inter-Ministerial Committee, which is reportedly considering recommending the use of CBN for Local Government accounts. 

The BoT accused the CBN of consistently creating hitches that disrupt the smooth operation of Local Government funds, particularly through encumbrances placed on money belonging to Local Governments. 

It noted that the CBN has previously denied maintaining accounts for Local Governments, yet is now being positioned as the sole custodian of their funds. 

“Should these accounts be forcibly opened with the CBN, it would create an avenue for individuals and groups who claim to be creditors of ALGON and Local Governments to freely exploit and siphon these them through fraudulent garnishee orders,” it warned. 

ALGON faults plans to take over LG funds

The ALGON BoT, specifically accused Barrister Evan Enekwe of playing a leading role in facilitating fraudulent garnishee orders, which the BOT says are unconstitutional and designed to divert Local Government funds for personal gain. 

It cited a March 5, 2025, letter signed by Enekwe and addressed to Local Government Chairmen, in which she allegedly made a fundamental error by falsely stating that the Supreme Court judgment on Local Government financial autonomy was delivered on July 11, 2025, rather than the correct date of July 11, 2024. 

Read also:

Eric Chelle Snubs Chelsea And Arsenal Stars For World Cup Qualifiers Sparks Debate

The BOT described this as a glaring and embarrassing blunder that exposes her lack of understanding of ALGON's governance structure and her desperation to manipulate the system. 

Furthermore, the BOT emphasized that there is no constitutional provision in ALGON for a position known as "Director General," a title which Enekwe allegedly assumes. 

The only recognized position in ALGON's Constitution is that of Secretary General, making her claims and actions illegitimate and misleading. 

ALGON asks AGF to intervene

The letter further described the sale or mortgaging of such a critical ALGON asset as a direct betrayal of the association’s interests, stating that it was motivated by greed and a calculated attempt to strip ALGON of its valuable assets for the benefit of a select few. 

In light of these concerns, ALGON BoT called on the Attorney General of the Federation to investigate and take decisive action against fraudulent garnishee orders, financial mismanagement, and unconstitutional actions within ALGON. 

ALGON cites Supreme Court ruling 

While reaffirming its commitment to protecting the financial independence of Local Governments, urging all stakeholders, including Local Government Chairmen, financial institutions, and regulatory bodies, to reject any directive that seeks to compromise Local Government funds.

It emphasised that only transparent financial practices, free from fraudulent interference, can guarantee the financial autonomy granted to Local Governments by the Supreme Court in its July 11, 2024, ruling. 

In light of these concerns, the BOT urged for the need for a stakeholders’ meeting, asserting that due consultation was not conducted before the decision was implemented and there is a need for inclusive dialogue to ensure that any action affecting local government administration aligns with constitutional provisions and serves the best interests of grassroots governance.

CBN makes changes to ATM withdrawal limits

Legit.ng earlier reported that the new N100 ATM off-site withdrawal charges have begun since March 1, 2025.

Imposed by the Central Bank of Nigeria (CBN), the withdrawal charge will see Nigerians and other ATM users charged 100 per transaction for using ATMs not belonging to their banks, otherwise known as off-site ATMs.

Findings show that banks loaded their ATMs with cash as they began the new charges.