The Federal Government has yet to implement the Supreme Court ruling mandating direct payment of monthly allocations into the accounts of Nigeria’s 774 local government councils, despite the judgment being issued in July.
The Supreme Court’s decision sought to end the practice of channelling local government funds through joint state-local government accounts, which critics argue hampers financial autonomy and grassroots development. However, four months on, allocations continue to be paid into the joint accounts by the Federation Accounts Allocation Committee (FAAC).
Following the ruling, the Federal Government pledged to address “operational challenges” within three months. That period expired in October, yet no substantive changes have been made.
Speaking to Sunday PUNCH, Obiora Orji, spokesman for the Association of Local Governments of Nigeria (ALGON), confirmed the delays. “It is what everybody is waiting for. Once the payments are made, it will be evident to all,” Orji stated.
Akeem Ambali, National President of the National Union of Local Government Employees (NULGE), attributed the delay to the absence of presidential approval for the implementation of local government financial autonomy.
Ambali disclosed that NULGE had submitted a position paper to an inter-ministerial committee established to oversee the Supreme Court’s directive. Chaired by Secretary to the Government of the Federation, Senator George Akume, the committee has reportedly completed its technical report and submitted recommendations to President Bola Tinubu for final approval.
“The recommendations have been sent to the President, and we are eagerly awaiting implementation. Financial autonomy for local governments is key to grassroots development,” Ambali said.
Meanwhile, the Office of the Accountant-General of the Federation confirmed ongoing preparations for direct disbursement. Spokesman Bawa Mokwa noted that, for now, state governments continued to receive allocations on behalf of local councils.
Mokwa added, “The process is ongoing, but the governors were paid directly. Full implementation will take time.”
Despite the delays, advocates insist that compliance with the Supreme Court ruling is crucial for empowering local governments to fulfil their mandates effectively. Critics warn that further procrastination risks undermining the judiciary and entrenching inefficiencies in Nigeria’s federal structure.
