Business

Association of Local Govt denies issuing threats to States Finance Commissioners over FAAC allocation 

The Incorporated Trustees of the Association of Local Governments of Nigeria (ALGON) has denied issuing a legal threat against the Forum of Commissioners for Finance of Nigeria over July allocations from the federation account (FAAC) to each of the 774 local government councils. 

In a letter by its president, Aminu Maifata dated August 5, and directed to Prof. Mike Ozekhome (SAN), ALGON denied sending a request to the commissioners via Ozekhome’s representative. 

Maifata said Ozekhome does not represent the Association, and therefore does not have the legal right to issue a letter on their behalf.  

In addition, ALGON demands that the letter be retracted from the public while the SAN offers an apology to the association.  

The letter seen by TheWitness read in part: 

“Your letter dated 30th July, 2024 on the above referenced subject which was addressed to the forum of State Commissioners for Finance refers. 

“The attention of our esteem Association was recently drawn to the said letter which was signed in your name and after much consideration, we are very much concerned and worried by your claim of being engaged by us on the subject.  

“We find your claim of engagement by us to be unfounded and untrue.  

“For avoidance of doubt, we emphatically deny such claim and state that, there has been no such engagement between our Association and you or your Chambers and that, your misleading representation in the letter is highly regretted. 

“Sir, you are aware of the ethical breach and the legal consequence of holding out yourself for a brief which you do not have. 

“Be that as it may, we demand that you retract the said letter and issue a public apology to ALGON within 48 hours from the receipt of this letter.” 

TheWitness understands that there have been a letter in circulation attributed to Prof.  Mike Ozekhome (SAN) on behalf of ALGON, demanding the immediate payment of July FAAC allocation.  

The letter dated June 30 alleged that ALGON is prepared to carry out a legal action against State Commissioners for refusal to release the FAAC allocation.  

It would be recalled that the Supreme Court, in a landmark judgement on July 11, directed the Accountant General of the Federation to pay local government allocations directly to their accounts.  

The apex court declared the non-remittance of funds by the 36 states as unconstitutional. 

Following this announcement, there have been rift between the some governors and the local government councils on FAAC allocations, with States like Oyo insisting it does not represent such fiscal autonomy.