Governors FG Local Government Autonomy
The Federal Government and state governors have agreed to a three-month delay in implementing the Supreme Court’s recent ruling on Local Government financial autonomy.
The postponement means that Local Governments nationwide will have to wait until October before the new law, which mandates direct payments into their accounts, is fully enacted.
The decision follows the Supreme Court’s landmark judgment on July 11, 2024, which declared that governors can no longer control or withhold funds allocated to Nigeria’s 774 Local Government Areas (LGAs).
EKO HOT BLOG reports that the court’s ruling required the Accountant-General of the Federation to disburse these funds directly to Local Government accounts, marking a significant shift in fiscal policy.
Previously, a regulation issued under former President Muhammadu Buhari in June 2019 aimed to enforce this autonomy by banning transactions on State and Local Governments Joint Accounts and limiting withdrawals from Local Government accounts. However, the regulation faced strong opposition from the Nigerian Governors’ Forum, leading to its suspension.
Governors FG Local Government Autonomy
In May 2024, the Attorney-General of the Federation, Lateef Fagbemi (SAN), took the matter to the Supreme Court to reinforce the constitutional provision for Local Government autonomy. The court’s ruling also addressed the issue of governors dissolving elected Local Government councils and replacing them with caretaker committees.
The ruling has been hailed by many as a crucial step towards strengthening grassroots governance. However, some state governors, led by Kwara State Governor AbdulRahman AbdulRazaq, have raised concerns about the immediate implementation of the ruling.
AbdulRazaq noted that the delay would allow time to address the financial challenges faced by states in supporting Local Governments.
The three-month moratorium is expected to provide a necessary buffer for stakeholders to prepare for the full implementation of the Supreme Court’s judgment, ensuring a smoother transition to the new financial autonomy regime.
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