NEWS UPDATE: FG DELAYS DIRECT PAYMENT TO LGs AS AGF AWAITS SUPREME COURT RULING DETAILS

July 25, 2024July 25, 2024

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The 774 local government districts in Nigeria have not yet received monthly funding directly from the federal government.

Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, clarified that the Attorney General of the Federation had not yet been informed of the Supreme Court’s proceedings for appropriate review and implementation.

Remember that certain state governors objected to the verdict made by a seven-member Supreme Court bench on July 11, 2024, which gave local governments financial autonomy?

The federal, state, and local governments comprise the three tiers of government power division that the Supreme Court emphasized.

The direct disbursement of monies to the LGAs was scheduled to begin last week when the Federation Account Allocation Committee convened for its monthly meeting.

Leadership claims that the FG stated that because of certain “practical impediments,” it has not yet started paying the relevant LGs directly.

Edun emphasized that more actions will be taken after all the information is accessible, and the process is still in its early stages.

He said that the FG has formed a committee to examine the viability of the ruling.

“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.