How Ekiti LGA Loses ₦282 Million To Bankroll Ailing LGAs In Kwara

Ilorin, Kwara- During the fiscal year 2021, the Ekiti Local Government Council (LGA) became embroiled in a financial controversy that a significant sum of ₦282 million was deducted from its funds, purportedly to aid financially distressed Local Government Areas (LGAs) within the state.

The inquiry sheds light on the complexities of Ekiti LGA’s financial dynamics in the state.

Financial Overview

According to ENetSuD, the Ekiti Local Government Council received a total income of ₦1,637,837,168 in 2021. The breakdown of the income sources is as follows:

• 89% (₦1,462,086,085) from the Federal Government through statutory allocation and Value Added Tax (VAT).3% (₦53,769,807) from the 10% Internally Generated Revenue (IGR) shared with 16 LGAs by KWIRS in compliance with the law.1% (₦8,436,586) contributed by the LGAs’ independently generated revenue.

  7% (₦113,544,691) sourced from various channels including non-oil revenue, exchange gain difference, forex equalization fund, and ecological fund.

Finances Of Ekiti LGA In 2021

Expenditure Analysis

Tewogbola Kazeem Kajogbola, the  Director of Investigation and Public Petition (Kwara South) noted that, under the administration of the Transitional Implementation Committee (TIC), Ekiti LGA expended a total sum of ₦1,610,343,052 in the same fiscal year:

• 62% (₦998,580,680) was allocated to the salary payments of SUBEB teachers, LGA Council staff, and pension and gratuities.16% (₦258,526,760) was utilized for the Council overhead and other administrative entities, including subvention to traditional councils and parastatals.4% (₦70,326,675) ostensibly allocated to capital and developmental projects with direct impacts on Ekiti LGA residents.

  18% (₦282,908,937) deducted from the funds of Ekiti LGA purportedly to address the needs of other financially struggling LGAs in the state.

Expenditure and Allocation:

Under the administration of an illegal Transition Implementation Committee (TIC), Ekiti LGA disbursed a total sum of ₦1,610,343,052 in the following proportions:

• 62% (₦998,580,680) allocated to the salaries of SUBEB teachers, LGA Council staff salaries, and pension and gratuities.
• 16% (₦258,526,760) directed towards Council overhead and administrative entities, including subvention to traditional councils, parastatals, etc.
• A meager 4% (₦70,326,675) is reportedly dedicated to capital and developmental projects directly impacting the residents of Ekiti LGA.
• A substantial 18% (₦282,908,937) was deducted to address the financial needs of other non-viable LGAs in the state, including Asa, Moro, Ilorin East, Ilorin South, Ilorin West, and Irepodun LGAs.

Breakdown Of Numbers Of Communities Where Each Need Was Identified

Implications and Concerns

The investigation raises serious concerns about the allocation and utilization of funds in Ekiti LGA. The sizable deduction of ₦282,908,937 to support other non-viable LGAs highlights potential financial mismanagement and the adverse effects on essential local development projects.

ENetSuD’s Perspective

ENetSuD, through its Citizens Enlightenment and Mobilization Program (CEMP), conducted a needs assessment across 50 communities in Ekiti LGA, identifying critical infrastructure gaps. The deduction of funds, particularly the ₦70,326,675 earmarked for capital projects, has implications for addressing the pressing needs of these communities.

Community Needs

ENetSuD’s assessment identified urgent needs across various communities in Ekiti LGA, including damaged boreholes, non-functional waterworks, lack of electricity infrastructure, inadequate educational facilities, poor road networks, drainage issues, and the need for agricultural and artisan support.

ENetSuD Recommendations

ENetSuD charges the government to ensure full financial and administrative autonomy of the Local Governments so that the Councils can look inward to enhance their potential that will lead to self-sufficiency.

Meanwhile, ENetSuD also advocates an end to the deduction of LGAs’ funds for the benefit of other areas, they emphasized the importance of each LGA resolving its challenges with its available resources.

However, the alleged deductions from Ekiti LGA’s funds have raised questions about the equitable distribution of resources and the impact on local development initiatives in the State.