Barring any last-minute changes, local government councils across Nigeria will begin receiving direct allocations from the Federation Account starting next month.
This marks the implementation of the July 11 Supreme Court ruling that granted financial autonomy to local councils.
The direct disbursement process will commence with the allocation for December 2024, putting an end to delays caused by the state/local government joint account system.
This move has faced resistance from many state governors displeased with the Supreme Court judgment.
A source from the Inter-Ministerial Committee tasked with enforcing the judgment confirmed that all 774 local government areas (LGAs) will fully transition to receiving their allocations directly by January 2025.
While some councils have already begun receiving direct funds, the system will be fully operational nationwide in the new year.
Ensuring Compliance and Accountability
The committee, chaired by the Secretary to the Government of the Federation (SGF), George Akume, includes prominent members such as Coordinating Minister of the Economy Wale Edun, Attorney-General of the Federation Lateef Fagbemi (SAN), Minister of Budget and Economic Planning Abubakar Bagudu, and other key stakeholders. President Bola Ahmed Tinubu has endorsed the push for local government financial independence.
Attorney-General Fagbemi warned that governors attempting to obstruct the autonomy of local councils or interfere with democratically elected officials would face legal action.
He also emphasized that chairmen found guilty of fund mismanagement would face severe penalties.
Framework for Local Government Autonomy
As part of the Supreme Court’s mandate, states have conducted elections to ensure councils are run by democratically elected officials, a prerequisite for accessing direct allocations.
The Senate has also backed the reform, urging constitutional amendments to eliminate ambiguities in Section 162(6) of the 1999 Constitution, which created the joint account system.
Senate President Godswill Akpabio called for clear guidelines to enforce local government autonomy, describing this development as a pivotal step toward grassroots empowerment.
The committee will reconvene in January 2025 to evaluate the implementation progress and address any lingering challenges.
This milestone is expected to enhance councils’ capacity to fulfill their constitutional responsibilities effectively and without undue interference from state governments.
Culled from The Nation.
