The Federation Accounts Allocation Committee (FAAC) has disbursed a total of N2.08 trillion in allocations to Nigeria’s Local Government Councils (LGCs) between July and December 2024, according to findings by The PUNCH.
However, despite the landmark ruling by the Supreme Court in July 2024 granting full financial autonomy to the country’s 774 Local Government Areas, the funds have still been paid into state government accounts, instead of directly to the local councils.
The ruling, which sought to ensure the effective use of funds by local governments and promote autonomy, directed that allocations meant for LGCs should bypass state governments and be deposited directly into the councils’ accounts. Nearly six months on, however, the Federal Government has yet to implement the ruling.
The delay has sparked frustration among officials and members of the Association of Local Governments of Nigeria (ALGON) and the National Union of Local Government Employees (NULGE).
Both organisations have expressed concern over the lack of direct payments, which has delayed the realisation of local government autonomy.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, cited “practical impediments” as the reason behind the Federal Government’s failure to implement the judgment. Edun further revealed that a committee had been set up to assess the feasibility of directly transferring funds to local government accounts.
An analysis of the monthly FAAC meetings between July and December 2024 shows that the total distributable revenue for the six-month period amounted to N8.351 trillion, with local governments receiving approximately 24.9% of the total revenue. The disbursements for the months of July through December were as follows:
- July 2024: N1.354 trillion total revenue; LGCs received N337.019 billion.
- August 2024: N1.358 trillion total revenue; LGCs received N343.703 billion, a slight increase from July.
- September 2024: N1.203 trillion total revenue; LGCs received N306.533 billion, marking a decrease of 10.1%.
- October 2024: N1.298 trillion total revenue; LGCs received N329.864 billion, a 7.6% increase.
- November 2024: N1.411 trillion total revenue; LGCs received N355.621 billion, a 7.8% increase.
- December 2024: N1.727 trillion total revenue; LGCs received N402.553 billion, a 13.2% rise from November.
Despite the total amount allocated to local governments increasing by 72.06% compared to the same period in 2023, with a total increase of N869 billion, the issue of direct payment remains unresolved. The Federal Government has yet to follow through with the court’s order.
The Supreme Court’s ruling in July 2024 declared that it was unconstitutional for state governors to control local government funds, and that these funds should go directly to democratically elected local councils, not to appointed caretaker committees, which are seen as a means of state control.
Attorney General of the Federation, Prince Lateef Fagbemi, had warned that state governors defying the ruling would face contempt charges, and urged local government chairmen to manage the funds properly, to avoid misuse.
However, local government associations have continued to express their dissatisfaction with the delay. Mohammed Abubakar, Secretary-General of ALGON, voiced concerns that the Federal Government’s inaction on the issue had left local governments in uncertainty.
He said that the failure to implement the ruling has prevented the opening of local government accounts for the direct receipt of allocations.
Bayo Adefesobi, Chairman of NULGE in Ogun State, criticised the Federal Government for its failure to enforce the Supreme Court judgment. He stated that direct access to federal allocations would enable local government chairmen to manage their resources more effectively, fostering grassroots development.
Similarly, Seun Oyinlade, Chairman of NULGE in Kwara State, expressed disappointment over the lack of progress in implementing the ruling. He noted that the continued involvement of state authorities in the payment process caused unnecessary delays and complications in the payment of local government workers’ salaries.
The issue also persists in Osun State, where Francis Famurewa, a former local government chairman in Atakumosa West, lamented the situation where local governments remain subservient to state authorities.
He highlighted that elected local government chairmen were still being forced to take orders from state-appointed commissioners.
Despite the significant financial allocations, the lack of autonomy remains a critical issue, with many local government officials calling on the Federal Government to honour the Supreme Court’s decision and empower the local councils to function independently.
