FG delays direct payment to LGs as AGF awaits S’Court ruling details

• Published On: 25 July 2024 at 18:30

The Federal Government is yet to begin direct payment of monthly allocations to Nigeria's 774 local governments.

Mr Wale Edun, Minister of Finance and Coordinating Minister of the Economy, indicated that the Supreme Court proceedings had yet to be submitted to the Attorney General of the Federation for thorough review and implementation.

Recall that on July 11, 2024, a seven-member Supreme Court bench gave financial autonomy to local governments, a decision that several state governors resisted.

The Supreme Court stressed the division of government power into three levels: federal, state, and local governments.


The Federation Account Allocation Committee had its monthly meeting last week, which was expected to signal the beginning of direct fund allocation to LGAs.


According to Leadership, the FG has failed to initiate direct payment to the different LGs because to "practical impediments."

Edun emphasised that the process is still in its early stages, and that more actions will be made once the full details are revealed.


He noted that the FG has formed a committee to examine the judgment's practicality.

"The actual proceeding has not been handed down to the AGF," Edun said on Thursday at a quarterly media conference on the country's recent economic actions.

According to Saturday PUNCH, allocations from the Federation Account to the 774 LGs have increased by N900 billion in the last 12 months.