Financial autonomy for Local Governments in Nigeria remains unimplemented despite a landmark Supreme Court ruling affirming it six months ago.
The ruling, delivered on July 11, 2024, by the Supreme Court, granted financial independence to the country’s 774 local government areas and prohibited governors from tampering with funds allocated to the councils.
The court directed the Accountant-General of the Federation to remit local government allocations directly to their accounts, declaring the states’ non-remittance of these funds unconstitutional.
Despite this decision, financial autonomy for local governments has yet to be implemented.
The National President of the Nigerian Union of Local Government Employees (NULGE), Hakeem Ambali, blamed the delay on the Federation Account Allocation Committee (FAAC).
“FAAC is yet to issue the necessary directive for direct allocation to local governments,” Ambali stated. “Even though the Central Bank of Nigeria is capable of handling the remittances, FAAC must take the lead. The Supreme Court judgment is clear, and there should be no ambiguity in its implementation. We urge Mr. President to take decisive action in ensuring compliance.”
Ambali appealed to President Bola Tinubu to shield local government autonomy from political sabotage, warning that vested interests could derail the process.
“It’s been six months since this historic judgment, and the implementation process is dragging,” he lamented. “A technical committee has concluded its work and forwarded the necessary documentation to the President over a month ago. While we commend the President’s commitment so far, we urge him to see this through. He must not allow any group or individual to obstruct the implementation of this critical reform.”
In response to the Supreme Court’s ruling, the Federal Government inaugurated a 10-member inter-ministerial committee on August 20 to oversee the implementation of local government autonomy. The committee’s mandate is to ensure that local governments operate independently, free from state government interference.
Sources indicate that the technical committee’s implementation framework has been submitted to President Tinubu for approval. If signed, local government councils across the nation will begin receiving their allocations directly from FAAC, marking a significant step towards strengthening grassroots governance.
NULGE remains hopeful that the President will act swiftly to uphold the Supreme Court’s decision, ensuring the effective functioning of local government councils across the country.
