Despite a Supreme Court ruling on July 11, 2024, granting financial autonomy to Nigeria’s 774 local government areas (LGAs), the Federal Government has not yet started direct payments of monthly allocations.
The delay has faced opposition from some state governors and highlights the ongoing tension over the separation of powers among federal, state, and local governments.
Wale Edun, Minister of Finance and Coordinating Minister of the Economy, explained that the delay is due to the Supreme Court’s proceedings not yet being communicated to the Attorney General of the Federation (AGF) for thorough review and implementation.
“The actual proceeding has not been handed down to the AGF,” Edun stated during a quarterly media briefing on recent economic activities.
Edun also noted that the Federation Account Allocation Committee’s recent meeting aimed to initiate direct disbursements to LGAs. However, the process has been stalled by “practical impediments.”
He added that the Federal Government has established a committee to assess the feasibility of the Supreme Court’s judgment and determine the next steps.
