In recent months, the Federal Government of Nigeria has faced scrutiny for its delay in implementing a Supreme Court ruling that ordered direct payments of local government allocations into the accounts of 774 local councils. Issued in July, the ruling aimed to enhance financial autonomy and ensure that local governments receive their allocations without state interference. However, four months following the ruling, the government’s failure to act has left the allocations still being channeled through joint state-local government accounts, as overseen by the Federation Accounts Allocation Committee. This stasis raises concerns among local governments, which are eager to see the ruling enforced.
The Federal Government did acknowledge the necessity to address operational issues before executing the Supreme Court’s directive. After the ruling, a three-month window was set for these issues to be resolved. This period concluded in October, yet no significant progress has been reported regarding the structural changes required to facilitate direct payments. Local government officials and stakeholders have expressed frustration with the lack of movement, highlighting the importance of autonomy in managing their finances, especially in light of the pressing needs in their respective constituencies.
The Association of Local Governments of Nigeria (ALGON) has remained vocal in its expectation for the direct payments to commence. Obiora Orji, the group’s spokesman, emphasized the anticipation surrounding this critical change, affirming that the financial independence of local councils cannot be overshadowed and that public awareness will naturally arise once payments begin. This sentiment resonates throughout the local government framework, with officials awaiting what they believe is a necessary reform that aligns with the Supreme Court’s ruling.
However, according to Akeem Ambali, the National President of the National Union of Local Government Employees (NULGE), delays in implementing these financial reforms can be attributed to the lack of President Bola Tinubu’s approval for local government financial autonomy. NULGE has actively engaged with the government by submitting a position paper to an inter-ministerial committee tasked with facilitating the incorporation of the Supreme Court’s judgment. The committee, led by Secretary to the Government of the Federation, Senator George Akume, has finalized its discussions and presented a technical report to President Tinubu. Ambali noted that the local government unions are keenly awaiting the President’s endorsement to kick-start the implementation process.
In the midst of these developments, Mr. Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation, provided an update, indicating that the process for direct disbursements to local governments is currently underway. He confirmed that state governments are still receiving allocations on behalf of local councils while waiting for the overhaul to be completed. The statement from Mokwa highlights a continuing reliance on existing structures, leaving many local governments in a precarious financial position without clarity on when they can expect their promised autonomy to materialize.
In summary, the ongoing delays in the direct payment of local government allocations in Nigeria remain a contentious issue following the Supreme Court ruling. An expectation for timely implementation has been built, but the lack of President Tinubu’s approval and operational hiccups have stalled progress. Local government officials, including those from ALGON and NULGE, are advocating for swift action to realize their financial independence, with hopes pinned on forthcoming decisions from the inter-ministerial committee. As stakeholders continue to wait for direct payments, their hopes for enhanced fiscal autonomy remain unfulfilled, suggesting a complex interplay between governance, financial management, and the operational effectiveness of local councils in Nigeria.
