Monthly Allocation: Why We Haven’t Started Paying Directly To LGAs — Federal Gov’t

Weeks after the Supreme Court granted financial autonomy to Nigeria’s 774 local government areas, the federal government said it was yet to commence direct payment of monthly allocation to the respective local government area councils due to some “practical impediments”.

A seven-man panel of the Supreme Court had on July 11, 2024 granted financial autonomy to the local governments, a move that was vehemently opposed by the state governors. The apex court held that the power of the government is portioned into three tiers of government, the federal, state and the local governments.

The monthly meeting of the Federation Account Allocation Committee (FAAC) was held last week. It ought to be the beginning of the direct disbursement of funds to the LGAs.

But, Minister of Finance and coordinating Minister of the Economy, Mr Wale Edun, said the proceedings of the apex court have not been communicated to the Attorney General of the Federation (AGF) for proper study and implementation.

However, Mr Edun said a committee has been set up by the federal government to look at the practicability of the judgement. “The actual proceeding has not been handed down to the AGF,” Edun stated on Thursday at a quarterly media briefing on recent economic activities in the country.