Four months after the Supreme Court ordered the Federal Government to pay monthly allocations directly into the accounts of Nigeria’s 774 local government councils, the directive has yet to be implemented.
In its July ruling, the Supreme Court mandated that local government allocations bypass the joint state-local government accounts and be remitted directly.
However, allocations are still being funneled through the existing system by the Federation Accounts Allocation Committee (FAAC).
Following the ruling, the Federal Government cited the need to resolve operational challenges and set a three-month timeline for implementation, which ended in October. Despite this, direct payments have not commenced.
The spokesperson for the Association of Local Governments of Nigeria (ALGON), Obiora Orji, confirmed the delay, saying, “It is what everybody is waiting for. It cannot be hidden, and once the payment is made, everyone will know.”
Similarly, the National President of the National Union of Local Government Employees (NULGE), Akeem Ambali, attributed the delay to the absence of presidential approval for full local government financial autonomy.
Ambali disclosed that NULGE had submitted its recommendations to an inter-ministerial committee chaired by the Secretary to the Government of the Federation, Senator George Akume. The committee has reportedly concluded its work and submitted a technical report to President Bola Tinubu for consideration.
“We are eagerly awaiting the President’s approval to begin implementation,” Ambali said.
Meanwhile, the Office of the Accountant-General of the Federation confirmed ongoing preparations for direct disbursement.
However, the Director of Press and Public Relations, Mr. Bawa Mokwa, acknowledged that state governments still receive allocations on behalf of local governments until the process is finalized.
“I think the governors were paid directly,” Mokwa said, but he did not provide a specific timeline for the commencement of direct payments.
The delay continues to generate concern among local government officials and stakeholders, who are eager for financial autonomy as mandated by the Supreme Court ruling.