Opacity in Management of Abia State Local Government Finances: A BudgIT Revelation

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Going by records published by BudgIT—a respected civic organization known for its in-depth financial reporting on states and countries. Abia stands out as one of the worst-performing states in transparency and accountability.

 

Last week, BudgIT released a report titled” The Missing Tier,” exposing the transparency status of states in the management of funds accrued to local governments across Nigeria. Once again, Abia featured prominently for the wrong reasons.

 

The study found that just six states, which include Imo Sate, provided partial budget data, while a staggering 18 states , including Abia, published no LGA budget information whatsoever on any official platform.

 

Ekiti state emerged as the clear leader, followed by Ebonyi, Osun, kebbi, kogi, Enugu, kaduna, and Yobe.

 

BudgIT ranked Abia state among those states that deliberately refused to open their books on the management of local government funds. The organization has consistently questioned the controversial law passed by the Abia State House of Assembly, which empowers the state government to appropriate all local government funds through the Joint Local Government Account.

 

In response, the state government has repeatedly manipulated the narrative and allegedly coerced local government chairmen into publicly claiming that they control these funds—when, in reality, they do not.

 

In truth, most local government chairmen are largely unaware of the actual amounts allocated to their councils. Reports indicate that they receive only about ₦6.7 million monthly, primarily to cater for security agencies within their jurisdictions.

 

The bulk of these funds remains unaccounted for, with the state government bearing full responsibility for every kobo allocated to the 17 local governments.

 

It is equally troubling that even capital projects within these local governments are neither initiated nor executed by the councils themselves, but instead awarded and paid for by the Ministry of Local Government and Chieftaincy Affairs.

 

Furthermore, the state government has effectively dismantled the structure of local governance—the constitutionally recognized third tier—by assuming direct control over the payment of overheads, salaries, and pensions. Key administrative offices, including the Heads of Service, Treasury, Administration, and Works departments at the local government level, have been rendered redundant.

 

According to reports from the Central Bank of Nigeria (CBN) and the Federal Ministry of Finance, Abia State receives an average of ₦9.3 billion monthly as local government allocation for its 17 councils.

 

As of December 2025, these local governments have collectively received over ₦300 billion since May 2023. Yet, there is little or no evidence of capital projects worth even ₦400 million executed directly by any local government in the state.

 

The situation is further compounded by the government’s deliberate refusal to publish local government budgets, a move widely seen as an attempt to evade public scrutiny and accountability.

 

Ironically, during his 2022/2023 campaign, Dr. Alex Otti strongly criticized previous administrations for tampering with local government funds, a stance he maintained as far back as 2014. He promised a transparent system that would allow local governments to manage their own resources independently.

 

Today, those promises appear to have been abandoned.

 

Abia has, unfortunately, become a state where public funds are mismanaged with little regard for accountability. The BudgIT report, which ranks Abia among the poorest managers of local government funds, only reinforces what many residents already know: the more things change, the worse they become, despite ongoing media efforts to present a deceptive narrative.

 

With an average of N560m a month , Abia state Government should allow the local Governments manage their funds so that impactful projects can be executed at the local level instead of the current method where funds are distributed as the spirit directs at Umuehim.

Obinna Oriaku
Ekwedike.

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