FG Delays Direct Payment To LGs As AGF Awaits S’Court Ruling Details

The Federal Government has not yet commenced direct payment of monthly allocations to Nigeria’s 774 local government areas.
Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, explained that the Supreme Court’s proceedings had not yet been communicated to the Attorney General of the Federation for proper study and implementation.
Recall that on July 11, 2024, a seven-man panel of the Supreme Court granted financial autonomy to the local governments, a decision opposed by some state governors.
The apex court emphasised the division of government power into three tiers: federal, state, and local governments.
The Federation Account Allocation Committee held its monthly meeting last week, which was supposed to mark the start of the direct disbursement of funds to the LGAs. But the Federal Government said it has yet to commence direct payment to the respective LGs due to some “practical impediments.”
Edun highlighted that the process is still in its early stages, and further steps will be taken once the full details are available.
He stated that a committee has been set up by the government to look at the practicability of the judgment.
“The actual proceeding has not been handed down to the AGF,” Edun stated yesterday at a quarterly media briefing on recent economic activities in the country.
The Tide learnt that allocations from the Federation Account to the 774 LGs have increased by N900bn in the last 12 months.