Why We Are Yet To Start Paying Monthly Allocations Directly To Local Govts – FG Reveals

The federal government of Nigeria has revealed that is is yet to commence the payment of monthly allocations to the local government areas in the country.

The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, who made the disclosure on Thursday, said some “practical impediments” are responsible for the delay.

Edun made the disclosure on Thursday during a quarterly media briefing on recent economic activities in the country weeks after the Supreme Court issued a landmark judgement on the payment of monthly allocations directly to the local governments when it ruled on local government autonomy.

CityNews Nigeria recalls the Supreme Court on July 11 ruled that it is unconstitutional for state governors to withhold funds designated for local government administrations.

The landmark judgement, delivered by Justice Emmanuel Agim, emphasized that this practice contravenes the financial autonomy rights of local governments and has persisted for over two decades.

The apex court’s decision mandates that all allocations from the Federation Account should henceforth be paid directly to the 774 local government councils across the country, rather than being filtered through state governors.

The monthly meeting of the Federation Account Allocation Committee (FAAC) was held last week. It ought to be the beginning of the direct disbursement of funds to the LGAs.

But Edun said the ruling of the court has not been communicated to the Attorney General of the Federation (AGF) for proper study and implementation.

He added that a committee has been set up by the federal government to look at the practicability of the judgement.

“The actual proceeding has not been handed down to the AGF,” Edun stated during the media briefing.