Supreme Court Ruling to Be Enforced: Direct Allocations for Councils Begin in January

Starting next month, local government councils across Nigeria will begin receiving direct allocations from the Federation Account, marking the end of the delay in implementing the Supreme Court’s July 11 judgment that granted financial autonomy to local councils.

A source familiar with the matter confirmed to our correspondent that the disbursement of January’s allocation will commence next month, fulfilling the court ruling. The move follows extensive efforts by the Federal Government to minimize disruption to the operations of state and local governments.

However, the process has been delayed due to subtle resistance from some governors, many of whom have been reluctant to relinquish control over the state/local government joint account, which is where council allocations have traditionally been paid. Despite this, approval has now been granted to begin direct FAAC allocations to the 774 Local Government Areas (LGAs) from January 2025.

A member of the Inter-Ministerial Committee tasked with enforcing the Supreme Court judgment explained that although some councils had already started receiving direct allocations, the full rollout will be completed by January. The committee, chaired by the Secretary to the Government of the Federation (SGF) George Akume, will reconvene in January to review progress and finalize plans for the implementation. This meeting will also address governors’ actions aimed at undermining the autonomy of locally elected officials.

The committee’s member expressed concern over actions such as the suspension of democratically elected local government chairmen in Edo State, calling them undemocratic and damaging to the autonomy granted to local governments. “Such actions undermine local government autonomy and create an environment where LGAs become pawns in the hands of state executives,” the source said.

This new move to ensure financial autonomy for councils is seen as a vital step towards empowering local governments to fulfill their constitutional responsibilities without interference from state governors. Local government autonomy has been a long-standing issue in Nigeria, with many governors seeking ways to retain control over local council funds.

The Federal Government has been vocal in supporting this autonomy, with the Attorney-General of the Federation, Lateef Fagbemi, warning that defiant governors could face contempt proceedings if they fail to comply with the Supreme Court’s ruling. Fagbemi emphasized that the goal of local government autonomy is to empower the grassroots, not to enrich individuals. He also made it clear that any council chairman found guilty of diverting funds would face legal consequences.

However, not all states have complied fully with the ruling. In Anambra State, for instance, the state legislature passed a law requiring LGAs to remit part of their allocations to a state-controlled joint account. Governor Chukwuma Soludo defended this move, arguing it was aimed at ensuring transparency and cooperation. Critics, however, argue that such legislation undermines the spirit of the Supreme Court ruling. In contrast, Nasarawa State has aligned with the Supreme Court judgment, abolishing joint accounts and ensuring local governments have direct control over their funds.

The Senate has also called for full compliance with the Supreme Court ruling, urging for constitutional amendments to eliminate any ambiguities regarding local government autonomy. Senate President Godswill Akpabio underscored the need for a clear framework to enforce local government autonomy effectively.

Former President of the Association of Local Governments of Nigeria (ALGON), Aminu Muazu Maifata, has urged newly elected council chairmen to use their direct allocations judiciously to improve grassroots development. He encouraged council leaders to focus on essential projects such as infrastructure, water supply, and security, which are critical to rural populations.

“We already set the template when the Supreme Court judgment was delivered, and each chairman knows what to do if the resources are available,” Maifata said. “I expect them to follow the template and deliver good governance to the people at the grassroots level.”

Local government chairmen are also encouraged to prioritize capacity building for both the legislative and executive arms of their councils, ensuring that local administrations are well-equipped to serve their communities effectively.