Indications have emerged that the 774 local government areas in Nigeria may start receiving their monthly federal allocations directly from the Accountant General of the Federation (AGF) from October 2024.
The Supreme Court of Nigeria of Nigeria had on July 11, 2024 in a landmark judgement ruled that local governments in Nigeria were an autonomous tier of government and should henceforth received direct allocation from the AGF.
Also, the apex court mandated every state to conduct local government elections as any local government without elected officials will not be eligible to receive allocation from the federal government.
Several states, including Anambra State that has refused to conduct local government elections since 2014 have now announced dates for conduct of local government elections in their states.
However, despite the apex court ruling the allocation to local governments in the last two months has been paid into the now outlawed joint accounts operated primarily the commissioners of Finance and Local Government administration in the states.
But speaking to Punch newspaper, a source close to the Nigeria Governors Forum (NGF) who spoke on the condition of anonymity revealed that both the governors and representative of the federal government have agreed on a transition process that will usher in the direct payment of allocation to the local governments.
According to the source, “The first step is the three-month moratorium on the judgment. For the next three months, the LG allocation will still be paid into the joint account with the respective states, while a permanent solution that will serve the objectives of financial autonomy as envisaged by the Supreme Court judgment is worked out.”
Earlier, the Board of Trustees (BOT) of the Association of Local Governments of Nigeria (ALGON) had procured the services of one of Nigeria’s leading lawyers, Mike Ozekhome (SAN) to ensure that the Supreme Court judgement was implemented in earnest.
As part of his services, Ozekhome was said to have through a letter dated July 30, 2024 and addressed to Forum of State Commissioners of Finance in Nigeria threatened to initiate contempt charges against the states if the apex court ruling was not implemented.
A local government Chairman from Nasarrawa State who spoke FACTSHEET, however, stated that ALGON and the NGF were already working out a “mutually beneficial modalities” for the implementation of court ruling.
The Council boss who craved anonymity because he has not been authrised to speak on behalf of his colleague chairmen admitted that many state governors were not happy with the new development but “since the Supreme Court is the final arbiter, there is nothing anyone can do than to find a way to ensure that the people at the grassroots, especially workers and teachers do not suffer.”