When Will LGs Receive Direct Federal Allocation? Presidency Opens Up

• President Bola Tinubu's administration has also disclosed that the implementation of the Supreme Court judgment on local government autonomy will commence in January ending
• The Supreme Court ruled in July 2024 that the states did not have the constitutional right to have control over the funds of the local government
• Sunday Dare, the spokesperson to Tinubu, said the implementation was delayed to allow some mechanism to be put in place and has now been achieved

The President has said that local governments in Nigeria will begin to receive their federal allocations directly from the Federal Allocation Account Committee (FAAC) from the end of January 2025. This move marks a significant beginning of local government autonomy.

Sunday Dare, the president's special adviser on media and public communication, disclosed the development while speaking in an interview on Arise News on Thursday night, January 16, adding that this move marks a significant beginning of local government autonomy.

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Tinubu to begin Supreme Court judgment implementation

According to Dare, President Bola Tinubu is committed to implementing the Supreme Court judgment in July 2024. The ruling declared that states do not have control over local government funds under the constitution.

In a judgment of Justice Emmanuel Agbim of the Supreme Court, the court ruled that the local government allocation should be paid directly or through the state accounts. However, citing the latter's ineffectiveness, the court ruled that the allocation should be paid directly to the local government accounts.

The Supreme Court ruling followed a suit filed by Lateef Fagbemi, the Attorney General of the Federation, who advocated for the financial autonomy of Nigeria's 774 local governments.

LG autonomy: Why Supreme Court judgment was delayed

However, the judgment was implemented with a delay to allow proper mechanisms to be established. Dare disclosed on Thursday, January 16, that the mechanisms had been completed. It paved the way for the locations to be paid directly into the local government accounts.

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During the interview, Dare explained

"I spoke to a local government chairman, who said, ‘Oh, I will be getting N2.9bn instead of the N200m I was getting before’. From the end of this month, LG will receive the money directly”.

The presidential aide then called on the public to scrutinise state and local government financial management. He recalled that a state collected N499 billion in 2024, four times higher than its previous allocation, but there was nothing to show for it.

He maintained that while the people often criticised the federal government, Nigerians must also demand accountability and transparency from the state and local governments.

How to achieve LG autonomy

Legit.ng earlier reported that the local government autonomy was yet to be fully achieved despite the Supreme Court judgment granting financial autonomy to the council.

This is as the Edo state House of Assembly announced the suspension of the elected council chairmen in the state over alleged financial misappropriation.

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However, Okanlawon Gaffar, a legal practitioner, in an interview with Legit.ng, calling for the overhauling of the 1999 constitution to grant full autonomy to the LG in Nigeria.

Source: Legit.ng