FG, Govs Reach Three-Month Agreement on LG Allocations

By Kingnaafrika

13th August 2024

The Federal Government and state governors have reportedly reached a three-month moratorium on Local Government autonomy. This decision comes in response to concerns about the impact of immediate implementation on salary payments and operational viability¹.

On July 11, 2024, the Supreme Court affirmed the financial autonomy of the 774 Local Governments (LGs) in Nigeria. The ruling stated that governors could no longer control funds meant for the councils. Under former President Muhammadu Buhari, the Nigerian Financial Intelligence Unit (NFIU) issued a regulation in June 2019, banning transactions on State and Local Governments Joint Accounts. Funds were sent directly to LG accounts. However, the status quo changed in May 2024 when the Attorney-General of the Federation filed a suit at the Supreme Court to strengthen LG autonomy. The suit sought to prevent governors from dissolving democratically elected local government councils and establishing caretaker committees, actions that violate constitutional provisions.

The Federal Government and state governors have agreed to a three-month delay in implementing LG autonomy. This means LGs may wait until October before direct payment into their respective accounts. The concern is that immediate autonomy could disrupt salary payments and operational stability.

The Supreme Court’s judgment has affirmed the independence of Nigeria’s LGs, but practical implementation requires careful consideration. The moratorium allows time for adjustments and ensures a smoother transition.

The FG and state governors have taken a cautious approach, balancing autonomy with practical realities. The three-month agreement aims to address concerns while respecting the court’s ruling. As we await further developments, local communities remain at the heart of this critical issue¹.