Governor Bassey Otu of Cross River State has spent millions of naira to purchase brand new SUVs for chairpersons and vice-chairpersons of the state’s local government councils despite the July 2024 Supreme Court judgement affirming the financial autonomy of Nigeria’s 774 local governments.
On 13 November, Mr Otu, represented by the Deputy Governor of Cross River, Peter Odey, presented Coolray SUVs to 18 vice-chairpersons at the Government House Calabar.
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Mr Odey was assisted by the Governor’s Chief of Staff, Emmanuel Ironbar.
A spokesperson to Governor Otu, Nsa Gill, in a press statement on 14 November, said the SUVs were meant to enhance productivity and efficiency at the local councils.
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The statement said the Vice-Chairperson of the Obubra Local Government Council, Leonard Ogwa, who spoke on behalf of his colleagues, “expressed gratitude” to Mr Otu for the vehicles.
Mr Ogwa said the vehicles would “enhance the smooth and efficient operation of their offices”.
The statement quoted Mr Ogwa as assuring them they would work alongside their council chairpersons to “build on the governor’s achievements.”
Cost of SUVs
According to information available on the Internet, the retail price for a Coolray SUV is between N14,700,000 (Coolray SUV – Dynamic Plus), N13,900,000 (Coolray SUV – Dynamic) and N16,900,000 (Coolray SUV – Sport Plus).
At a unit price of N16,900,000, 18 Coolray SUV—Sport Plus would cost N304,200,000, but the Cross River State Government must have spent much more than that if that is the exact brand it bought for the officials. This is because of the characteristic opaque nature of government procurement processes in Nigeria, which makes them susceptible to prices of goods and services being inflated.
According to the statement, Governor Otu had earlier presented Ford SUVs to the chairpersons of the 18 local councils.
The governor may have spent at least a billion naira to purchase the vehicles for the council chairpersons and vice-chairpersons.
Where did the money come from?
PREMIUM TIMES asked Mr Otu’s spokesperson why the governor should give out vehicles to officials of local councils when the councils are expected to enjoy financial autonomy.
“The autonomy is still there, and the governor abides by the judgement of the Supreme Court, but you also know that even the (Nigerian) constitution also gives power to the House of Assembly to make laws for the administration of the local governments,” Mr Gill responded.
He said the governor’s giving out vehicles to the officials of the local councils does not diminish the regional government’s autonomy.
PREMIUM TIMES also asked Mr Gill where the money for purchasing the vehicles came from.
“You know, for sometimes, there was a joint account (between the state government and the local councils) operation, and there were some reserve funds, so to say, in the joint account.
“I can’t say that the fund came from there, but I know they may have come from there as well,” he responded.
Mr Gill, however, said Governor Otu will not operate the joint account.
He said there is some kind of partnership between the local and state governments to develop Cross River.
Our reporter asked Mr Gill about the possibility that vehicles for local officials may not have been a priority need of the councils.
“First, the chief executives of the councils need to be mobile. The departments in the councils will also need vehicles. And those vehicles (needed by the departments) will be bought directly by the councils,” he responded.
Background
Before the landmark Supreme Court judgement, local councils and their officials existed at the mercy of the governors of their respective states.
Many governors deliberately refused to conduct local elections for several years. They were comfortable appointing their allies to run the affairs of the councils and dictating to them how to use the councils’ funds.
In some cases, the governor arbitrarily dissolved the leadership of some councils and handpicked a new set of officials.
With the Supreme Court judgement, the joint account has been abolished. The Accountant General of the Federation has been mandated to pay funds that belong to the local government directly into a council’s bank account.
The Supreme Court also declared setting up a caretaker committee to run local councils illegal.
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