Direct Allocation to Local Govts Commences October – NULGE

The Federal Government is set to commence the direct payment of allocations to local government councils by the end of October, according to Ambali Olatunji, President of the National Union of Local Government Employees (NULGE).

In an interview with reporters, Olatunji confirmed that the long-awaited implementation of financial autonomy for local government administration would officially begin this month, marking a significant shift in how local governments will be funded.

This move follows a landmark Supreme Court ruling in July, where Justice Emmanuel Agim declared that it was unconstitutional for state governors to withhold funds allocated to local councils. The court emphasized that only democratically elected local governments are constitutionally recognized, effectively barring state governments from appointing caretaker committees.

State governors, who initially resisted the ruling, requested a three-month grace period to organize local council elections. With the extension having expired in September, the direct allocation system is now ready to take effect.

Olatunji expressed optimism that this financial autonomy would enhance the capacity of local governments to deliver essential services and address the developmental challenges facing their communities. He noted, “By October 11, the implementation of financial autonomy for local governments will commence. We expect that by the end of October, council accounts across the country will directly receive their allocations.”

NULGE has also submitted recommendations on the proper administration of local government councils to the Federal Government’s technical committee responsible for overseeing the autonomy process. Olatunji further urged both federal and state governments to implement safeguards to prevent the mismanagement or diversion of these funds by council administrators.

This development is expected to bring about greater efficiency and transparency in local governance across Nigeria, potentially ushering in a new era of improved grassroots development.