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FG Delays Court-Mandated Local Government Allocations 4 Months After Ruling

Published

1 month ago

Dec 1, 2024.

Four months after the Supreme Court ordered the Federal Government to pay monthly allocations directly to the accounts of Nigeria’s 774 local government councils, the directive remains unimplemented.

In July, the apex court ruled that local government allocations must bypass joint state-local government accounts managed by state governments. However, the Federation Accounts Allocation Committee (FAAC) continues to pay allocations into the joint accounts, citing unresolved operational issues.

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EKO HOT BLOG reports that following the ruling, the Federal Government announced a three-month timeline to address logistical challenges for implementation, but that period expired in October without any action.

The spokesperson for the Association of Local Governments of Nigeria (ALGON), Obiora Orji, confirmed that direct payments had not begun, adding, “It is what everybody is waiting for. It cannot be hidden, and once the payment is made, everyone will be aware.”

National Union of Local Government Employees (NULGE) President, Akeem Ambali, attributed the delay to the lack of presidential approval for full local government financial autonomy.

He explained that NULGE had submitted its recommendations to an inter-ministerial committee chaired by the Secretary to the Government of the Federation, Senator George Akume. The committee concluded its work and forwarded its report to President Bola Tinubu for final approval.

Delays Local Government Allocations

Ambali expressed optimism, saying, “The recommendations by the committee have been submitted to the President, and we are eagerly awaiting the start of the implementation.”

Meanwhile, the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa, confirmed that payments to local councils were still being processed through state governments. He noted that the direct disbursement process was underway but did not provide a timeline for its completion.

This delay has heightened concerns over the Federal Government’s commitment to implementing local government financial autonomy as mandated by the Supreme Court.