The Federal Government and state governors have agreed to delay the implementation of financial autonomy for Local Governments until October.
This decision was made due to concerns about salary payments and the overall functioning of these local councils.
However, as of July 2024, Local Governments were still not receiving their funds directly. At a meeting of the Federation Allocation Account Committee (FAAC), where funds were distributed to all levels of government, the Local Governments’ share of N337.019 billion was not paid into their accounts as directed by the Supreme Court.
In reaction, the Association of Local Governments of Nigeria (ALGON) expressed frustration over the delay. They accused state finance commissioners of working with governors to block the direct payment of funds to Local Governments. The body also threatened legal action against these commissioners if they failed to comply with the Supreme Court’s ruling.
On July 25, the Federal Government eventually confirmed that the direct payment of funds to Local Governments had not yet started.
The Minister of Finance, Wale Edun, explained that there were still “practical impediments” to implementing the Supreme Court’s order. He mentioned that a committee had been formed to study the ruling and find a way to put it into practice
The implementation of the Supreme Court’s judgment on Local Government autonomy is being hindered by logistical obstacles, The Punch reports.
Specifically, the Federal Government is said to be encountering difficulties in enforcing the ruling due to concerns about its potential effects on salary disbursements and the operational sustainability of Local Governments.
Governor Seyi Makinde of Oyo State had earlier voiced concerns about the judgment and urged for a homegrown approach to safeguard the welfare of the people.
“The law is the law and when there is a conflict, yes, we should go to the court. But it behoves us to look for our own homegrown solutions that can ensure that we have transparency and that our people do not suffer”.
