Where Is Isiala Ngwa South’s ₦3.1 Billion? A Critical Look at Alleged Mismanagement of Local Government Funds | #NwokeukwuMascot

 Opinion 

Analysis of JAAC Receipts: Isiala Ngwa South as a Case Study of Alleged Mismanagement in Abia State Local Governments By N. Mascot Nnamdi | #NwokeukwuMascot

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Local governments in Nigeria particularly Abia State, were designed to deliver grassroots development have instead become symbols of financial opacity and administrative inefficiency. A close examination of the Joint Accounts and Allocations Committee (JAAC) receipts of Isiala Ngwa South Local Government Area (LGA) from May 2023 to October 2024 exposes troubling trends of alleged mismanagement and neglect. This analysis not only points to the systemic challenges facing Abia’s local government system but also raises urgent questions about transparency and accountability under Governor Alex Otti’s administration.

Isiala Ngwa South LGA, Governor Alex Otti’s home local government—despite his acknowledgment of Aro ancestry—received a total revenue of ₦5,044,410,351.89 during the 18-month period under review. However, the financial records, as published on the Abia State government’s website (abiastate.gov.ng) by the Auditor general of the state, reveal glaring discrepancies.

The Breakdown of Expenditures are as listed below: 

Wages and Salaries: ₦583,141,351.87

Overhead Costs: ₦72,372,637.50

Health Sector: ₦407,908,987.50

Education Sector: ₦788,472,223.31

Stipends for Ndi Eze: ₦50,973,626.43

The total expenditure amounts to ₦1,902,868,826.61, leaving an unaccounted balance of ₦3,141,759,545.29.

However, The only visible capital project in Isiala Ngwa South during this period is the construction of a new hall, which had reached the lintel level before the transitional chairmen Christened "Mayors"  were relieved of their duties. Experts estimate the cost of these projects including grading of rural roads at less than ₦250 million, raising serious concerns about how the remaining ₦3.1 billion was utilized.

This lack of substantial development is particularly disappointing given Alex Otti’s criticisms of past administrations for alleged financial mismanagement of local government funds. The absence of transparency and visible projects under the current administration suggests a continuation in a more troubling patterns.

Governor Otti upon assuming office in May 2023 dissolved all local Government chairmen and permanent secretaries, consolidating the management(comprised of himself, his Accountant General and the Commissioner of Chieftancy affair) of local government funds at the state level. The Governor assured that these funds were being saved for each LGA and would be handed over when new leadership was appointed. However, this centralization has failed to translate into tangible grassroots development as funds from the LGA's estimated at about N25b is allegedly unaccounted. 

If we assume the N3.1b was transferred to Joint Account for joint development of critical infrastructure by the State , can we point at three projects in Abia today that is deserving of Presidential attention .

One of the major things to note is that the removal of fuel subsidy and the floating of the Naira have significantly increased monthly allocations to local governments, it quadrupled compared to what it use to be during past administrations .This financial windfall should have resulted in visible development of projects and improved service delivery. Instead, the focus appears to remain on basic obligations like salaries, pensions and grading of rural roads  which are being celebrated as achievements.

The financial records of Isiala Ngwa South LGA raise several critical questions; Where is the ₦3.1 billion balance? How can an LGA with substantial allocations show so little progress in terms of development?

The case of Isiala Ngwa South is not isolated. It reflects a broader crisis in Abia State’s local government system, where JAAC receipts have become a source of alleged fraud and mismanagement. The promise of using JAAC funds to drive grassroots development has been replaced by a troubling lack of accountability, leaving communities across the state to suffer the consequences.

The people of Abia State, particularly residents and indigenes of Isiala Ngwa South should stand up to their obligations, demand transparency and accountability from Governor Otti’s administration. The centralized management of JAAC funds must be scrutinized, and local governments must be empowered to deliver the development they were designed to provide.

The journey toward accountability begins with asking tough questions and insisting on answers. Abia State cannot afford to continue down this path of financial opacity and administrative inefficiency. The time for change is now.

©️NMN