The Federal Government and state governors have reached a consensus to postpone the implementation of financial autonomy for Local Governments until October.
This decision arises from concerns about salary payments and the effective functioning of local councils.
As of July 2024, Local Governments have not been receiving their funds directly. At a recent Federation Allocation Account Committee (FAAC) meeting, the Local Governments’ share of N337.019 billion was not deposited into their accounts, contrary to a Supreme Court directive.
The Association of Local Governments of Nigeria (ALGON) expressed frustration over the delay, accusing state finance commissioners of obstructing the direct payment of funds.
ALGON has threatened legal action against these commissioners if they do not comply with the Supreme Court’s ruling.
On July 25, the Federal Government confirmed that direct payments had not yet begun. Finance Minister Wale Edun attributed the delay to “practical impediments” and noted that a committee was formed to address the Supreme Court’s order.
The implementation of the Supreme Court’s judgment is facing logistical challenges.
The Federal Government is concerned about the potential impact on salary disbursements and the operational sustainability of Local Governments.
Governor Seyi Makinde of Oyo State voiced concerns, advocating for a locally developed solution to ensure transparency and prevent negative impacts on the populace.
He emphasized the need for a balanced approach to avoid harming local communities during conflicts between authorities.
Sources within the Nigeria Governors’ Forum and the Federal Government reveal ongoing efforts to find a political solution to the judgment.
A three-month moratorium has been agreed upon, during which Local Government allocations will continue to be paid into the joint state accounts while a permanent solution is devised.
Governors are cautiously optimistic about the judgment but are concerned about the potential return to the situation of the early 1990s, where local government staff faced significant salary delays.
Mrs. Anestina Iweh, Chairperson of the National Union of Local Government Employees in Akwa Ibom State, criticized the Federal Government for not updating the account details of the 774 Local Governments.
She emphasized the need for timely salary payments and urged adherence to the Supreme Court ruling.
The Supreme Court’s ruling on July 11, 2024, mandated that governors no longer control Local Government funds and directed the Accountant-General of the Federation to make direct payments to their accounts.
This decision follows previous attempts under former President Muhammadu Buhari to protect Local Government funds, which faced resistance and adjustments.
