PRUDENT MANAGEMENT OF LOCAL GOVERNMENT COUNCILS’ FINANCES
By: Augustine Omilo
“In the course of attempting to accomplish all of these, the example of Mr. Ikenna Ukpaka, the Auditor-General (Local Government), in Delta State deserves a recognition as a template for ensuring prudence in autonomous spending by the 774 local government areas of Nigeria. In a recent retreat organized for stakeholders in local government administration in Delta state, Ukpaka urged them to pay priority attention to financial regulations and procurement acts in the handling of their affairs. He harped on the need to pay special attention to allocations to traditional institutions, payment salaries of primary school teachers and pensions amongst others”.
This is the season of planning. The federal government has prepared a budget of about N46trn as the budget for 2025. An appropriation bill to that effect has been sent to the National Assembly, NASS. One of the striking items in the bill is a provision for about $13b external borrowing to help fund the deficit contained in the government income and expenditure guideline for next year.
Just as the government at the center has done, state governments have followed suits. A state like Delta has proposed an appropriation bill of about N900b for the year. Others are doing likewise. Even Edo state governor has just signed a supplementary budget of about N450b into law. And there is only about one month left for the state to implement what is about half of what Delta has proposed for the whole of 2025.
Meanwhile, it is yet to be an established fact that the 774 local government areas’ chairmen in the country also prepare guiding financial management plans in their domains. If they do, the citizens seldom know about that. This is an error. If the autonomy granted to them must work well, it follows also that they must display transparency in their operations, starting with annual budgets. There are many reasons for this.
For example, the budget will help the councils to bring before the public their expenditures on staff emoluments, pensioners’ benefits, capital and recurrent expenditure as well as the expected revenue to finance and management the annual plan.
In addition to this, the local governments must indicate their intentions to upgrade or construct or reconstruct local roads leading to places such as markets, farming areas, schools and hospitals.
Primary schools’ managements fall under the jurisdiction of the grassroots democratic structure. Many of the schools, except in few States like Lagos and Delta are in dire need of renovations. Provisions must be made for this in advance for stakeholders to see and evaluate.
Disbursing money to traditional rulers in their domains is not enough. The administrators must make adequate provisions for the fight against insecurity and other crimes. The vigilante groups must be funded from the purse of the LGAs in collaboration with the state governments and concerned citizens of the areas.
Accountability at the local government levels can only be effectively monitored through budget implementation analysis and performance evaluation These will be with a view to determining areas of strength and weaknesses financial prudence among leaders at the level of grassroots governance.
As the citizens keep being abreast with what their state governments and the federal government owes creditors, they are entitled equally to know the true picture of their local government balance sheets for periods under review at all times.
Beyond ensuring well publicized budgets for local governments, they should also be allowed to have free hands in the selection or appointment of their treasurers, heads of personnel management and other key positions in the council areas. This will ensure stability in the management of their finances.
SEE ALSO: CURBING THE SPATE OF ANGER IN THE LAND By Omilo
Again, local councils across the nation must strive to pay salaries and wages of staff so promptly that key professionals in such areas as accounting are attracted to them for employment. Internal auditing procedures of the councils should be strengthened to ensure strict compliance to procurement laws. Long this line, the state-appointed Auditor-general, local government should be made to equally function like external auditors to the councils.
Councils must devise ways and means of generating sufficient revenues to fund their budgets with a mind set of possibility of the federal government failing to meet up with monthly Federal Accounts Allocation Committee, FAAC obligations to them some times. In order words, the grassroots political leaders must begin to envision the mantra of “Nigeria without oil” and “Internal Revenue generation autonomy”.
But then, the local governments may not be efficient in management of funds if the government at the centre do not recognize the need to appropriately distribute the nation’s wealth according to the population and other peculiar needs of the local people in Nigeria.
In the course of attempting to accomplish all of these, the example of Mr. Ikenna Ukpaka, the Auditor-General (Local Government), in Delta State deserves a recognition as a template for ensuring prudent management in autonomous spending by the 774 local government areas of Nigeria. In a recent retreat organized for stakeholders in local government administration in Delta State, Ukpaka urged them to pay priority attention to financial regulations and procurement acts in the handling of their affairs. He harped on the need to pay special attention to allocations to traditional institutions, payment salaries of primary school teachers and pensions amongst others.