The Federal Government has not yet begun 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.
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 emphasized 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 direct fund disbursement to the LGAs.
According to Leadership, the Federal Government has stated that it has not yet begun direct payments to the respective local governments due to some “practical impediments.”
Minister Wale Edun highlighted that the process is still in its early stages, and further steps will be taken once the full details are available.
He mentioned that the Federal Government has established a committee to examine the practicability of the Supreme Court’s judgment.
“The actual proceeding has not been handed down to the AGF”
Edun stated on Thursday at a quarterly media briefing on recent economic activities in the country.
