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This article provides an update on the Nigerian Local Government Authority Autonomy. News filters show that the federal government and the state government have agreed on the local government allocations.
The Federal Government of Nigeria has agreed with States on Local Government allocation.
In a significant move to make the existing 774 Local Government areas in Nigeria autonomous, the Federal Government has reached a three-month agreement with State Governors.
It is to be noted that the Nigerian 1999 constitution enshrined local government as a third-tier government and that it is not to be treated as an appendage to either the federal or the state.
On Monday, an accord was reached on the effects of consistent salary payment and transparent operation, which will rapidly bring about political and economic growth at the grassroots level.
Various sources close to both parties disclosed that local government authorities may have to wait three months for the new policies’ implementation. Under these policies, each local government would receive its allocation straight from the central without any interference from states.
It can be recalled that on 11th July, 2024, The Supreme Court ruled in favour of financial autonomy for all the local governments in the country, and strictly affirmed that State should no longer operate joint account with them.
The highest court also judged that the Account-General of the Federation should now pay Local Government allocation into the various accounts to ensure transparency and rapid development at the local levels.
During the immediate past administration, under the leadership of Muhammadu Buhari, the Nigerian Financial Intelligence Unit abolished the continued use of joint accounts between the states and local governments on June 1, 2019.
This enabled funds to be sent directly into local government accounts without any interference and involvement by the states.
It is to be remembered that each local government receives the minimum daily amount of N500,000 from this period, and any failure of the bank to disburse these funds attracts stern penalties.
However, governors under the umbrella of the Governors’ Forum opposed this policy. They stuck to the status quo to short-change and divert funds meant for development at the local level for their gains.
This unlawful move by the governors was eventually countered in May 2024, when the Attorney-General of the Federation, Lateef Fagbemi (SAN), filed a suit marked SC/CV/343/2024 at the Supreme Court, which occasioned the end of the governors’ unlawful act.
The caretaker committee was immediately installed, and the over-wielding of state power over the local government abated.
The Attorney-General posited, as stipulated in the constitution, local government heads are elected and no other force is mandated to interfere in its affairs.
The suit did not go well with the governors, who expressed their distaste through their state attorney generals.
This was before the last Supreme Court ruling on Thursday, July 11th, 2024, which ruled that all 774 local governments in the country should be made financially independent.
In the collective judgment involving the seven-member pane, the Supreme Court ruled in favour of the suit brought forward by the Federal Government to seek and grant autonomy to all local governments in the federation.
Emmanuel Agim, one of the panel members, delivered that the Supreme Court has ruled that all local governments should start receiving their allocation directly from the Accountant-General of the Federation.
The ruling stated that it is unconstitutional for states to hijack local government allocation.
This judgment has been described by many notable Nigerians and Local Government Authorities as a move in the right direction toward ensuring good governance, growth, and development at the local levels.
Some governors are already voicing their distaste and dissatisfaction over the ruling.
Chairman of the Nigeria Governors’ Forum (NGF), who is also the Kwara State Governor, Abdulrahman Abdulrazaq, said the ruling has come as a relief from relief to the governors.
Reactions By Various Quarters Trail Supreme Court Ruling To Grant All Local Governments Financial Autonomy In The Country
Addressing the journalists after a meeting with President Bola Tinubu at the Presidential Villa, Abuja, on 12th July, the Governor said, “The governors are happy with the devolution of power regarding local government autonomy. The public doesn’t know how much states spend bailing out local governments.”
An Update On The Nigerian Local Government Authority Autonomy
However, states have yet to comply with the ruling of the Supreme Court.
In July, the Federation Allocation Account Committee’s total disbursements increased to N1.354tn, with LGs receiving N337.019bn.
At the FAAC meeting held last month, July presided over by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed how much allocation the three tiers of government (Federal, State, and Local) had received as allocation from the federation purse.
He stated that the Federal Government received N459.776bn, the states received N461.979bn, and the local governments received N337.019bn, while a sum of N95.598bn was paid to oil-producing states as derivation (13 percent of mineral revenue).
However, the State commissioners of finance are conspiring with governors to divert local government allocation for state use.
Oyo State Governor Seyi Makinde disclosed his worry over the Supreme Court ruling and suggested a well-looked-into suggestion to ease pressure and ascertain that it does not aggravate the existing issues.
“The law is the law, and when there is a conflict, we should go to the court. But it behooves us to look for our own homegrown solutions to ensure transparency and that our people do not suffer. This is because when two elephants are fighting, the grass will suffer, ”Makinde said.
To ensure that the local government is well run and able to pay the new national minimum wage, the National President of ALGON, Aminu Mu’azu-Maifata, has called for an improved monthly allocation to all local governments in the country.
Speaking in a media chat in Lafia, Nasarawa State, Mu’azu-Maifata said, “Once the National Assembly enacts the new minimum wage and becomes a law, every council chairman must obey.
“But how to obey such a law is what we will look into. By sourcing funds to pay salaries, we will also find ways to attract and harmonise resources so that we will not default.”
On Monday, various sources revealed that efforts are being put in place to seek a political solution to manage the ruling by the Supreme Court.
Noting that Federal Government has made a right move in ensuring even developments takes place around all over the country.
“From what I know from the Nigeria Governors’ Forum, the Federal Government and the states are looking for a political solution to manage the fallout of the Supreme Court judgment.
“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.’
He added, “The governors are happy that the judgment came eventually, as it would relieve them of the burden of having to augment monthly FAAC allocation of the LGs to be able to pay local government staff, primary school teachers, and primary health workers, among others.
An Update On The Nigerian Local Government Authority Autonomy
“However, they are apprehensive that we may go back to the early 1990 era when primary school teachers and other local government staff members were owed salaries for an average of 12 to 24 months.”
Confirmation of the Disbursement of the Local Government Allocation
When contacted on Monday, the Chairperson of the National Union of Local Government Employees, Akwa Ibom State chapter, Mrs. Anestina Iweh, revealed that allocations for all 774 local governments were disbursed to their various state commissioners for finance.
Iweh revealed in Uyo, Akwa Ibom State, that the allocation was paid to the commissioners because all the local governments had yet to forward their account details to the Federal Government.
“The Federal Government does not have the account details of the 774 LGAs. They have not done anything, no procedure, no process, even to date, to update the account details of the 774 LGAs.
“We can’t keep quiet and allow workers to stay without salaries, so money must come for salaries to be paid. If they are ready to act according to the Supreme Court judgment, they will get account details of the 774 LGAs and do the needful.”
A local government head in Plateau State, who preferred his name be concealed from the public, spoke about the three-month period given by the federal government before the implementation of the new judgment.
“Don’t forget that after the Supreme Court judgment, the Federal Government passed a circular giving a three-month window before the implementation. As it is, the period has not elapsed, and so there is no cause for alarm,” he said.
“We at the local government areas are not complaining that our monthly allocations are still channelled through the state government. We receive the allocations because we are LGs. I don’t know of other LGs, but we in Plateau are receiving ours accordingly, and the state government does not tamper with it,” he concluded.
An Update On The Nigerian Local Government Authority Autonomy
