The Accountant-General of the Federation, Oluwatoyin Madein, and the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), have begun discussions on implementing the Supreme Court’s July 11, 2024, judgment on local government autonomy. However, direct allocation disbursement to the 774 local government areas (LGAs) remains delayed.
To enforce the ruling, both officials are working on modalities for submitting LGAs’ bank account details for direct payments. However, identifying LGAs with democratically elected officials has posed a challenge.
According to minutes from the Federation Account Allocation Committee (FAAC) Technical Sub-Committee meeting, only LGAs in Delta State have submitted their account details to the Office of the Accountant-General of the Federation (OAGF).
The minutes confirmed that Delta State’s LGAs submitted their account details during a FAAC Technical Sub-Committee meeting held on January 17, 2025, at the Federal Ministry of Finance, Abuja. While other LGAs have started submitting details through various channels—including state governments—only Delta has fully complied.
Legal and Procedural Hurdles
Despite some progress, discussions on the modalities for account submissions are ongoing. The Accountant-General’s office is still consulting with the AGF on legal procedures, especially regarding constitutional provisions.
One major challenge is verifying which LGAs have constitutionally elected chairmen. Madein acknowledged this difficulty, stating that for LGAs with duly elected leadership, a clear mechanism is needed to ensure they receive direct allocations.
The Accountant-General of Niger State suggested that once the AGF provides guidance, a formal letter should be sent to the OAGF, outlining the steps LGAs must follow to submit their accounts.
The FAAC meeting also emphasized the need for uniformity across states to prevent inconsistencies in implementing financial autonomy. The Director of the Federation Account was directed to document concerns and ensure proper communication with the AGF’s office.
With Delta State setting the pace, other states are expected to follow once clear directives are issued by the Attorney-General.