The implementation of the newly approved N70,000 minimum wage in Nigeria has encountered a significant obstacle at the local government level, sparking concerns from the National Union of Local Government Employees (NULGE). While federal and some state employees have started receiving the increased wage, a considerable number of local government workers remain excluded, creating a disparity that NULGE President, Hakeem Ambali, has strongly condemned. This uneven application of a national act, Ambali argues, stems from the persistent lack of full local government autonomy, a long-standing issue that continues to undermine the rights and welfare of local government employees.
The core of the problem lies in the ambiguity surrounding the responsibility for local government workers’ salaries. With some governors asserting that these workers fall outside their purview due to the ongoing debate surrounding local government autonomy, the channel for addressing wage-related grievances remains unclear. This ambiguity allows for inconsistencies in minimum wage implementation, with some states like Ogun, Rivers, and Kano adhering to the new wage structure while others lag behind. NULGE maintains that the minimum wage is a national law applicable to all workers, irrespective of their employment tier, and therefore, the observed discrepancies are unacceptable. Ambali has called upon the federal government to intervene and ensure equitable implementation of the minimum wage across all levels of government, upholding the principle of equal treatment under the law.
The struggle for local government autonomy in Nigeria has a long and complex history, marked by legal battles and political maneuvering. The crux of the matter revolves around the control of federal allocations meant for local government areas. State governors have historically exerted significant influence over these funds, often using them to maintain political control at the grassroots level. This practice has been widely criticized for hindering the development and effectiveness of local governments, which are constitutionally mandated to provide essential services to the populace. The tussle for control has led to numerous legal challenges, with the Federal Government and civil society organizations consistently advocating for greater autonomy for local governments.
A significant turning point in this protracted struggle arrived in May 2024 when the Federal Government, represented by the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), filed a lawsuit challenging the state governors’ control over local government funds. The lawsuit specifically targeted the practice of dissolving elected local councils and replacing them with caretaker committees, a tactic often employed by governors to consolidate their political grip. This legal action aimed to restore the constitutional mandate of local governments and ensure their financial independence. The suit argued that governors’ encroachment on local government funds and their interference in the democratic process at the local level were unconstitutional and detrimental to good governance.
The Supreme Court, on July 11, 2024, delivered a landmark judgment that significantly bolstered the case for local government autonomy. The court affirmed the financial autonomy of all 774 local governments in Nigeria, effectively stripping state governors of their power to manage or withhold funds earmarked for these local bodies. The ruling directed the Accountant-General of the Federation to remit allocations directly to the accounts of the local governments, declaring the previous practice of channeling funds through state governments illegal. This judgment was hailed as a victory for local governance and a crucial step towards strengthening democratic institutions at the grassroots level. It provided a legal framework for the financial independence of local governments, empowering them to fulfill their constitutional responsibilities effectively.
In response to the Supreme Court ruling and to ensure its full implementation, the Federal Government established a 10-member inter-ministerial committee on August 20, 2024. This committee’s primary mandate is to oversee the transition to a fully autonomous local government system, free from undue interference by state governments. Its tasks include monitoring the direct remittance of funds, ensuring compliance with the court’s directives, and addressing any challenges that might arise during the implementation process. The committee’s formation signals the Federal Government’s commitment to strengthening local governance structures and ensuring that local governments have the necessary resources and autonomy to deliver essential services to their communities. This move is expected to significantly impact local development and enhance accountability at the grassroots level. The committee’s success will be crucial in determining the effectiveness of the Supreme Court ruling and the long-term viability of local government autonomy in Nigeria.
