The Joint Action Committee of Local Government-based Unions, made up of the Nigeria Union of Local Government Employees (NULGE), Nigeria Union of Teachers (NUT), and Nigeria Union of Pensioners, has called on the federal government to pay all salaries, training and pension funds accruing to them directly into the Local Government Service Commission account.
This, the JAC said, would foster transparency and prudent management of resources at the council level.
The new appeal by the unions to the federal government is coming against the backdrop of recent pronouncement by the Supreme Court, which gives financial autonomy to local governments in Nigeria.
Justifying its stance, the unions stated that the move is necessary for industrial stability of the local government system.
The unions amplified this fear in a jointly signed memorandum made available to Blueprint on Monday by NUT president; Titus Amba, NULGE president; Ambali Akeem and NUP president, Godwin Abumisi.
According to the unions, “the federal government should make workers’ salaries a first-line charge on the Federation Account and paid directly to statutory bodies, including the Local Government Service Commission.”
To secure their preferred fiscal allocation model, the unions further urged the federal government to restructure all the supervisory institutions controlling and supervising local government workers by expanding their governing boards to include the workers’ and council chairmen’s representatives.
The unions also requested that 25% of the gross salary of teachers and local government workers be deducted from the LG allocation to pay pension and gratuity and be domiciled with the Local Government Staff Pension Board.
The gross salary of primary school teachers and 1.5% of the total LGA allocation for running the State Universal Basic Education Board according to them should be domiciled with the Board.
It further said, “For workers’ welfare and industrial harmony, training and capacity building and sustainability of industrial stability in the local government system, payment of the gross salary of local government workers should be made a first-line charge and domiciled in the relevant agencies.
“On 11 July 2024, the Supreme Court ruled that it was unconstitutional for governors to hold funds allocated to the LGs, saying the councils should determine how to maintain and utilize their funds.
“Following the judgment, the federal government expressed its commitment to its implementation. It set up a 10-man committee under the Secretary to the Government of the Federation, Senator George Akume, to work out the modalities for enforcing the judgment.
“The committee also set up a subcommittee headed by the Minister of Budget and Economic Planning, Senator Abubakar Bagudu, to work with stakeholders on the technical details of the enforcement.
“However, despite the general sentiments in favour of the apex court judgment, there are concerns about the capacity of the local councils to discharge the responsibilities bestowed on them efficiently.
“Gross Salary of Local Government Workers should be domiciled with the Local Government Service Commission while “2% of total LG allocation for Local Government Commission running grants and Local Government Training should be domiciled with the Commission.”
On a final note, they urged the federal government to pay the 5% statutory grant for traditional rulers to the traditional councils’ account.
“We recommend the enforcement of procurement policy in all local governments; enforcement of NFIU guidelines; creation of the Audit Department; and appointment of the Auditor-General for the LG from chartered accountants in the LG,” the statement added.