The Supreme Court’s landmark ruling on July 11, 2024, granting financial autonomy to Nigeria’s 774 local government areas (LGAs), has yet to be implemented six months later. This groundbreaking decision aimed to liberate local governments from the financial grip of state governors, who had historically controlled LGA funds, hindering development at the grassroots level. The court mandated direct payment of allocations from the Federation Account Allocation Committee (FAAC) to local government accounts, declaring the states’ practice of withholding funds unconstitutional. However, despite the clarity and weight of this judgment, the autonomy remains on paper, raising concerns about political will and potential bureaucratic bottlenecks.
The delay in implementing this crucial reform, which promises to empower local governance and accelerate development at the community level, is attributed to the Federation Account Allocation Committee (FAAC). Hakeem Ambali, President of the National Union of Local Government Employees (NULGE), asserts that the FAAC’s inaction is the sole obstacle to the direct disbursement of funds. He maintains that the Association of Local Governments of Nigeria (ALGON) is fully prepared to comply with the Supreme Court’s directive and points out that the Central Bank of Nigeria (CBN) possesses the capacity to facilitate these direct payments. Ambali emphasizes the unambiguous nature of the Supreme Court’s judgment, stressing that it should be readily implemented without hesitation or attempts at circumvention.
A significant step towards implementation occurred on August 20, 2024, with the establishment of a 10-member inter-ministerial committee by the Federal Government. This committee was tasked with developing a framework for the practical application of the Supreme Court’s ruling. The committee has reportedly completed its work and submitted the implementation document to President Tinubu for his assent. This development fuels hope for imminent action, but the lingering delay raises questions about political maneuvering and potential resistance from state governors who stand to lose control over substantial financial resources.
The crux of the issue lies in the transfer of financial control from state governors to local governments. This shift in power dynamics has understandably met with resistance from some governors who have historically used LGA funds for their own political agendas or to supplement state budgets. The non-implementation of the Supreme Court’s ruling highlights the enduring tension between the central government and state governments, and the political complexities surrounding resource allocation. The delay also underscores the challenges of translating judicial pronouncements into tangible action, particularly when they impinge on established power structures and resource distribution mechanisms.
NULGE has appealed to President Tinubu to ensure the full implementation of the Supreme Court’s judgment, urging him to resist pressure from political forces seeking to undermine local government autonomy. Ambali expresses gratitude for the President’s initial positive steps but stresses the importance of his steadfast commitment to see the process through to completion. The success of local government autonomy hinges on the President’s political will to overcome potential obstacles and ensure that the benefits of this landmark ruling reach the grassroots level.
The delayed implementation of financial autonomy for local governments carries significant implications for Nigeria’s development. Effective local governance is crucial for delivering essential services, fostering community development, and promoting participatory democracy. By empowering local governments with direct access to their allocated funds, the Supreme Court’s ruling aims to enhance accountability, reduce corruption, and accelerate development at the grassroots level. The continued delay in implementing this critical reform undermines these objectives and perpetuates the cycle of underdevelopment that has plagued many local communities. The ultimate success of this legal victory depends on the unwavering commitment of the President and the vigilance of civil society organizations to ensure its full and effective implementation.
