“Unlocking the Mystery: FG’s Delay in Direct Monthly Allocations to Local Governments Explained”

Babatunji Wusu –

The Nigerian federal government has disclosed that it has not yet started disbursing monthly allocations to local government areas across the country. Wale Edun, the Minister of Finance and Coordinating Minister for the Economy, made this revelation on Thursday, attributing the delay to practical challenges.

Speaking at a quarterly media briefing on recent economic activities, Edun addressed the situation following a landmark Supreme Court judgement affirming the financial autonomy of local governments. The ruling, delivered on July 11 by Justice Emmanuel Agim, declared unconstitutional the practice of state governors withholding funds meant for local government administrations, a practice ongoing for over two decades.

The Supreme Court’s decision mandates that all allocations from the Federation Account should directly reach the 774 local government councils nationwide, bypassing state governors. Despite the recent meeting of the Federation Account Allocation Committee (FAAC), which was expected to initiate direct fund disbursement to LGAs, Edun noted that the court’s ruling has yet to be formally transmitted to the Attorney General of the Federation (AGF) for thorough review and implementation.

Edun further mentioned that the federal government has established a committee to assess the feasibility of implementing the court’s judgement. “The official proceedings have not yet reached the AGF,” he clarified during the media briefing.