Federal Gov’t Cites Practical Impediments in Delaying Direct LGA Allocations

Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

Weeks after the Supreme Court granted financial autonomy to Nigeria’s 774 local government areas, the federal government has not yet commenced direct monthly allocations to the local government councils due to certain “practical impediments.”

On July 11, 2024, a seven-member Supreme Court panel granted financial autonomy to the local governments, a decision strongly opposed by state governors. The court ruled that governmental power is divided into three tiers: federal, state, and local.

Despite the recent Federation Account Allocation Committee (FAAC) meeting, which was expected to mark the start of direct fund disbursement to the LGAs, the process has been delayed. Minister of Finance and Coordinating Minister of the Economy, Wale Edun, explained that the Supreme Court’s proceedings have not yet been communicated to the Attorney General of the Federation (AGF) for proper review and implementation.

Edun added that a committee has been established by the federal government to examine the feasibility of the judgment. “The actual proceedings have not been handed down to the AGF,” Edun stated during a quarterly media briefing on recent economic activities in the country.