By Chidinma Omar


The civic-tech non-profit organisation, BudgIT have once again cast a critical spotlight on Abia State, raising serious concerns about accountability at the local government level.

The latest development comes in the wake of a court case instituted by the Executive Chairman of Ikwuano LG, Anthony Nwaubani challenging the veracity of reported incident of fraud of ₦19 million in the LG. Nwaubani, alleging defamation has challenged the veracity of the story and dragged the reporter, Tony Icheku to an Abia State High Court at Ikwuano LG.

In its latest report titled “The Missing Tier,” BudgIT listed Abia State among the 18 States that failed to publish any local government budget data on official platforms, positioning it among the worst performers in fiscal transparency nationwide. 

The report was a comprehensive assessment of how Nigerian States manage and disclose financial information relating to local government allocations. The outcome is both revealing and troubling. 

BudgIT’s classification of Abia among States that have effectively refused to disclose local government financial data underscores a deeper structural issue. Central to this concern is the controversial legal framework enacted by the Abia State House of Assembly, which authorizes the State government to manage local government funds through the Joint Local Government Account system. This arrangement has continued to draw criticism from civic actors who argue that it undermines the financial autonomy of the constitutionally recognized third tier of government.

More concerning are allegations that the true state of affairs is being obscured. While official narratives suggest that local government chairmen retain control over their finances, reports indicate otherwise. Many chairmen are said to lack full visibility into the actual allocations to their councils, receiving in practice an estimated ₦6.7 million monthly, largely earmarked for security-related expenditures, while the bulk of the funds remains centrally controlled

Available data from the Central Bank of Nigeria and the Federal Ministry of Finance indicates that Abia State’s 17 local governments receive an average monthly allocation of approximately ₦9.3 billion. Cumulatively, this translates to over ₦300 billion disbursed between May 2023 and December 2025. However, there is scant verifiable evidence of capital projects executed directly by local governments that correspond proportionately to these inflows, raising legitimate questions about fund utilization and oversight.

Further compounding the issue is the operational restructuring of local governance in the state. Critical administrative functions, ranging from salary payments to project execution, have been effectively centralized under the Ministry of Local Government and Chieftaincy Affairs. As a result, key local government offices, including Treasury, Administration, Works, and even the office of the Head of Service, have seen their functional relevance significantly diminished.

This erosion of institutional autonomy contradicts the foundational principles of Nigeria’s federal structure, where local governments are intended to serve as independent engines of grassroots development. The current framework not only weakens governance at the local level but also limits the capacity for responsive, community-driven development initiatives.

Equally troubling is the state government’s continued refusal to publish local government budgets. Transparency in budgeting is a cornerstone of public accountability, and its absence inevitably fuels perceptions of opacity and erodes public trust.

This development stands in stark contrast to the reformist posture once championed by Gov. Alex Otti during his pre-election engagements. Having consistently criticized previous administrations over the handling of local government funds, he had pledged to institute a transparent system that would guarantee financial autonomy for local councils. The apparent divergence between those commitments and current realities has not gone unnoticed.

Ultimately, the findings by BudgIT reinforce a growing public sentiment: that despite political transitions, systemic challenges in financial accountability persist, and, in some respects, may be deepening. With an estimated average of ₦560 million monthly allocation per local government, there exists a significant opportunity for transformative grassroots development, if only these funds are managed transparently and deployed efficiently.

Restoring confidence in the system will require deliberate policy recalibration. Granting genuine financial autonomy to local governments, ensuring full disclosure of budgetary data, and strengthening institutional checks are not merely administrative options, they are governance imperatives. Until such reforms are implemented, concerns over opacity and accountability in Abia State’s local government finances will likely remain unresolved.

Dailyledger reports that in its report alleging fraudulent transactions of over ₦19m at Ikwuano LG, the LG Executive Chairman spurned inquiries on opacity and accountability of LG funds, even as he continues to have a running battle with the legislative council over fund utilisation and oversight. 

He has however challenged the published report in court alleging false publication and defamation while demanding ₦3.1 billion as damages