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CBN Urged To Suspend Local Government Allocations State Over Constitutional Breach

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The Human and Environmental Development Agenda (HEDA Resource Centre) has petitioned the Central Bank of Nigeria (CBN), urging the immediate suspension of local government allocations to Rivers State over alleged constitutional violations by the state’s Sole Administrator, Vice Admiral Ibok-Ete Ekwe Ibas (rtd). The petition, which was also copied to the Accountant General of the Federation, cites a breach of the recent Supreme Court judgment affirming the autonomy of local governments.

In the letter signed by HEDA Chairman, Mr. Olanrewaju Suraju, and addressed to CBN Governor Mr. Olayemi Cardoso, the organisation condemned the actions of the Sole Administrator, who assumed office after President Bola Ahmed Tinubu declared a state of emergency in Rivers State in March 2025. HEDA alleged that on April 9, the Sole Administrator illegally dismissed all elected local government chairmen and installed appointed officials in their place—a move the group described as a “flagrant breach” of Section 7 of the 1999 Constitution (as amended), which guarantees the existence of democratically elected local councils.

The group further cited the recent Supreme Court ruling in AG Federation v. AG Abia State & Ors (2024) 17 NWLR (Pt. 1966) 1, which reinforced the constitutional requirement that democratically elected officials must administer local governments. The court had unequivocally declared that any governance of local government areas by appointed caretakers or administrators is unconstitutional, illegal, and of no effect.

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Suraju emphasised that local governments’ administration and financial management fall strictly within elected councils’ purview. He asserted that continued disbursement of local government allocations by the CBN to unelected officials in Rivers State is a violation of the Supreme Court’s ruling and the Nigerian Constitution. “The law is settled; local governments must be run by elected officials. Any disbursement of funds to unconstitutional administrators not only contravenes Section 7 of the Constitution but also undermines the rule of law,” Suraju stated in the letter.

HEDA demanded that the CBN, as custodian of public funds, suspend all local government allocations to Rivers State until democratically elected councils are restored. Copies of the petition were also sent to the Accountant General of the Federation, Mr. Shamsedeen Ogunjimi. “We expect prompt action from your office in compliance with the Constitution and the apex court’s decision. Anything short of this is a blatant disregard for democratic governance and the rule of law,” the petition concluded.

The CBN has a critical role to play in ensuring that public funds are disbursed in accordance with the law. By suspending allocations to Rivers State, the CBN would be upholding the rule of law and promoting democratic governance. The petition highlights the need for accountability and transparency in the management of public funds.

The Supreme Court’s ruling in AG Federation v. AG Abia State & Ors (2024) 17 NWLR (Pt. 1966) 1 is a landmark judgment that has far-reaching implications for local government administration in Nigeria. The ruling underscores the importance of democratic governance and the rule of law in the management of local government areas.

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The Rivers State government’s decision to dismiss elected local government chairmen and install appointed officials has been widely criticized. Many have argued that the move is a ploy to undermine democracy and concentrate power in the hands of the state government.

HEDA’s petition to the CBN is a welcome development. The organisation’s demand for the suspension of local government allocations to Rivers State is a call to action that must be heeded. The CBN must take prompt action to uphold the rule of law and promote democratic governance.

The implications of the CBN’s decision are far-reaching. If the CBN fails to suspend allocations to Rivers State, it would be seen as condoning the state government’s actions and undermining democracy. On the other hand, if the CBN suspends allocations, it would be upholding the rule of law and promoting democratic governance.

In conclusion, HEDA’s petition to the CBN is a timely intervention. The CBN must take prompt action to suspend local government allocations to Rivers State until democratically elected councils are restored. The rule of law and democratic governance must be upheld, and the CBN has a critical role to play in ensuring that public funds are disbursed in accordance with the law.

The ball is now in the CBN’s court. The organisation’s response to HEDA’s petition will determine the future of democracy in Rivers State. Will the CBN uphold the rule of law and promote democratic governance, or will it condone the state government’s actions and undermine democracy? Only time will tell.


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