The Federal Government and state governors have agreed to postpone the implementation of financial autonomy for Local Governments until October due to concerns about salary payments and the overall functionality of these local councils…..For More READ THE FULL ARTICLE HERE ▶▶ As of July 2024, Local Governments were not receiving their funds directly. At a Federation Allocation Account Committee (FAAC) meeting, the Local Governments’ share of N337.019 billion was not paid into their accounts as directed by the Supreme Court…..For More READ THE FULL ARTICLE HERE ▶▶
Thank you for reading this post, don't forget to subscribe!The delay has frustrated the Association of Local Governments of Nigeria (ALGON), which accused state finance commissioners of collaborating with governors to block the direct payment of funds. ALGON has threatened legal action against the commissioners if they do not comply with the Supreme Court’s ruling…..For More READ THE FULL ARTICLE HERE ▶▶
The Federal Government confirmed on July 25 that the direct payment of funds to Local Governments had not yet begun. Finance Minister Wale Edun explained that “practical impediments” were preventing implementation, and a committee was formed to address these challenges.
The Punch reports that logistical obstacles are impeding the enforcement of the Supreme Court’s judgment on Local Government autonomy. Concerns include the potential impact on salary disbursements and the operational sustainability of Local Governments. Governor Seyi Makinde of Oyo State has called for a locally adapted solution to ensure transparency and protect the welfare of citizens, cautioning against the adverse effects of unresolved conflicts.
Sources close to the Nigeria Governors’ Forum and the Federal Government indicate that a political solution is being sought to manage the fallout from the court ruling. The current plan involves a three-month moratorium, during which LG allocations will continue to be paid into the joint account with states while a permanent solution is developed. Governors are concerned about a return to past issues of salary arrears for local government staff if the judgment is fully enforced.
Mrs. Anestina Iweh, Chairperson of the National Union of Local Government Employees in Akwa Ibom State, reported that the July allocation for Local Government Areas was disbursed to state finance commissioners rather than directly to the LGs. She criticized the Federal Government for failing to update account details for all LGs and stressed the need for compliance with the Supreme Court judgment to ensure timely salary payments.
The Supreme Court’s ruling on July 11, 2024, mandated that governors no longer control Local Government funds, directing the Accountant-General of the Federation to make direct payments. This decision followed a 2019 regulation by the Nigerian Financial Intelligence Unit, which sought to protect Local Government funds but faced resistance from the Nigerian Governors’ Forum and was subsequently scaled back.
