Barring any last-minute resistance from state governors, direct payment of statutory allocations to Local Government Areas will kick off November 2024. The National President, National Union of Local Government Employees (NULGE), Hakeem Ambali, disclosed on Sunday 27th October 2024.
This was as the Economic and Financial Crimes Commission assured of its commitment to diligently monitoring and tracking expenditures of the 774 LG chairmen from the revenue disbursement allocated from the Federal Government every month. The latest development marks a significant turning point in the implementation of LG autonomy as mandated by the Supreme Court and ahead of the October 31st deadline set for states to conduct LG elections.
In May, the Federal Government, represented by the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, filed a lawsuit to challenge the governors’ authority to receive and withhold federal allocations meant for Local Government Areas. The suit sought to prevent state governors from unilaterally dissolving democratically elected local government councils and establishing caretaker committees.
The AGF argued that the constitution mandated a democratically elected local government system and did not allow alternative governance structures. The Supreme Court, on July 11, 2024, gave a landmark judgment affirming the financial autonomy of the 774 LGs in the country and ruled that governors could no longer control funds meant for the councils. The seven-member Supreme Court panel, led by Justice Garba Lawal, ruled that it was illegal and unconstitutional for governors to manage and withhold LG funds. The apex court also directed the Accountant-General of the Federation to pay LG allocations directly to their accounts, as it declared the non-remittance of funds by the 36 states unconstitutional.
But this was further delayed by a three-month moratorium by the Federal Government over concerns arising from its impact on salary payments and operational viability. Also, on August 20, the Federal Government instituted a 10-member inter-ministerial committee to implement the Supreme Court’s ruling on local government autonomy. The committee members include the Minister of Finance & Coordinating Minister of the Economy, Wale Edun; Attorney General of the Federation & Minister of Justice, Lateef Fagbemi SAN; Minister of Budget & Economic Planning, Abubakar Bagudu; Accountant-General of the Federation; Oluwatoyin Madein and the Governor of the Central Bank of Nigeria, Olayemi Cardoso. Others are the Permanent Secretary, Federal Ministry of Finance, Mrs Lydia Jafiya, the Chairman, Revenue Mobilisation Allocation & Fiscal Commission, Mohammed Shehu, and representatives of state governors and the local governments. The committee’s primary goal is to ensure that local governments are granted full autonomy, allowing them to function effectively without interference from state governments. The panel, headed by the Secretary to the Government of the Federation, George Akume, concluded and submitted its assignment on October 13.
Last Tuesday, findings showed that no fewer than 164 LGS in eight states were yet to conduct elections and may have their federal allocations seized by the Federal Government, in line with the court ruling.
But giving the latest update on Sunday, the NULGE Chairman stated that the issue has been resolved, and payment is now scheduled to commence at the November Federal Accounts Allocation Committee distribution. Ambali said, “On the issue of the allocation, we want to be very careful and ensure that everything is well put into place so that there won’t be any form of issues. “We are aware that governors are also trying to have their way. See what is going on in Abia state for instance. “So, we don’t want any loophole at all. We believe that by November, the whole thing will come into full effect.”
He further stated that the Ministry of Budget and National Planning has organized a stakeholder meeting to facilitate the smooth implementation of the policy.“
Last week, we, the stakeholders, had technical sessions with the minister of budget and national planning from Monday to Wednesday. o we are very sure that by November, the whole thing will be implemented,” he noted.