FG Delays Direct Payment to LGs, Awaits Supreme Court Ruling Details

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The Federal Government has put on hold the direct payment of monthly allocations to the 774 local government areas in Nigeria, pending the release of the Supreme Court’s full ruling on financial autonomy for local governments.

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, explained that the Attorney General of the Federation is yet to receive the Supreme Court’s proceedings, which granted financial autonomy to local governments on July 11, 2024. “The actual proceeding has not been handed down to the AGF,” Edun stated at a quarterly media briefing.

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Although the Federation Account Allocation Committee held its monthly meeting last week, the FG cited “practical impediments” for the delay in direct payment to the LGs. Edun assured that a committee has been set up to study the practicability of the judgement and take further steps once the full details are available.

The Supreme Court’s ruling emphasized the division of government power into three tiers: federal, state, and local governments. However, some state governors have opposed the decision, leading to uncertainty over the implementation of direct payment to LGs.

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