Minister of Justice and Attorney-General of the federation, Lateef Fagbemi SAN
The Federal Government’s Committee on Local Government Autonomy has concluded its work and signed a technical document supporting financial independence for local governments, which will soon be presented to President Bola Tinubu.
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EKO HOT BLOG reports that Hakeem Ambali, President of the National Union of Local Government Employees (NULGE), confirmed that the committee finalized its discussions and signed the document, which is expected to allow local governments to receive allocations directly from the Federation Account Allocation Committee (FAAC) by the end of November.
Established following a Supreme Court ruling on July 11, 2024, which declared governors’ control over local government funds unconstitutional, the 10-member inter-ministerial committee includes officials like Minister of Finance Wale Edun, Attorney-General Lateef Fagbemi, and Central Bank Governor Olayemi Cardoso.
The Supreme Court’s decision affirmed the autonomy of the 774 local governments, ordering that their allocations be disbursed directly, preventing governors from withholding funds or appointing caretaker committees in place of elected local councils. This development aims to empower local governments to operate independently and manage their finances without interference from state administrations.
Despite progress, concerns remain, particularly among educators.
The National Union of Teachers (NUT) has expressed doubts about local governments’ ability to pay the new ₦70,000 minimum wage for primary school teachers.
Autonomy Implementation Agreement
The union pointed out that many councils have not even implemented the previous ₦30,000 minimum wage, with some still operating under the ₦18,000 rate set in 2011. This disparity is attributed to a lack of local government autonomy in the past, preventing councils from managing funds effectively.
In response, NULGE’s Ambali assured that, with local government autonomy now in effect, the new minimum wage would be implemented across all councils.
The Nigeria Labour Congress (NLC) has set a December deadline for states to comply with the minimum wage policy, threatening further actions if non-compliance persists.
Ambali added that the inclusion of local government representatives in the recent minimum wage negotiations signifies a commitment to fair implementation under the new autonomous structure.
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