State governments are still receiving local government allocations despite a Supreme Court verdict mandating that the funds be paid directly to the individual accounts of the 774 local government councils. It has been nearly six months since the ruling, but the Federation Accounts Allocation Committee continues to deposit the funds into joint state/LG accounts. This raises concerns and questions about the implications of this ongoing situation.
For the month of November 2024, the sum of N1.727 trillion was shared among the federal government, states, and local government councils by the FAAC, marking the highest revenue distribution in the country’s history. From July to December 2024, a total of N8.351 trillion was distributed, with the local government councils receiving N2.075 trillion.
Political economist Dr. Robert Adah blames governors for impeding the implementation of the Supreme Court judgment, describing their actions as frustrating and contrary to the court’s ruling. Members of the Association of Local Governments of Nigeria (ALGON) express disappointment over the delay in direct payment of federal allocations to local governments, highlighting the importance of financial autonomy for effective governance at the grassroots level.
While some local government officials await the new dispensation with hope, there are concerns about the governors’ interference in financial autonomy for the councils. Citizens and analysts alike emphasize the need for local government chairmen to receive direct allocations and operate independently to ensure effective service delivery and governance in rural areas.
The recent local government elections conducted by states following the Supreme Court ruling have also sparked criticism, with allegations of electoral malpractice and unfair practices favoring ruling parties. Civil society organizations and analysts call for true fiscal federalism to address the challenges facing local government administration and ensure democratic principles are upheld.
