The Federal Government and state governors have reached a temporary agreement to delay the implementation of Local Government (LG) financial autonomy for three months. This delay will push back the direct payment of LG allocations to their accounts until October.
This decision follows a Supreme Court ruling on July 11, 2024, which affirmed the financial autonomy of Nigeria’s 774 LGs and mandated that funds be paid directly to their accounts, bypassing state governors. The court ruled that governors could no longer control or withhold LG funds, declaring previous practices unconstitutional.
Despite the landmark ruling, implementation has faced hurdles. The Federal Government cited “practical impediments” and set up a committee to explore the feasibility of the Supreme Court’s judgment. Concerns include the impact on salary payments and operational viability for many LGs, with some states reportedly struggling to manage the transition.
The Nigerian Governors’ Forum has expressed relief at the judgment but also apprehension about the potential challenges. They highlight that only a few LGs can comfortably manage expenses with FAAC allocations and internal revenue alone. The delay aims to address these issues while a permanent solution is developed.
In the interim, allocations are still being routed through state accounts, with some states having yet to update LG account details. Local Government officials from various states have expressed frustration and concern about compliance with the Supreme Court ruling, with calls for increased funding to support the new minimum wage laws.
The situation remains fluid, with discussions ongoing between the Federal Government and state authorities to resolve the issues and ensure that the judgment is implemented effectively.
News Editor