The Federal Government is set to cease allocations to local government areas across the country that do not have democratically elected chairmen by October, in accordance with a recent Supreme Court ruling on local government autonomy.
An official from the Federal Ministry of Justice disclosed to LEADERSHIP Weekend that states without elected local government chairmen have been granted a three-month moratorium, starting from July, to conduct necessary elections and comply with the ruling.
This decision follows a mutual agreement between the states and the federal government to delay the implementation of the Supreme Court’s July 11, 2024, judgment. The ruling affirms the financial autonomy of Nigeria’s 774 local governments and prohibits governors from controlling funds meant for these councils. The court directed the Accountant-General of the Federation to ensure that allocations are paid directly into the accounts of the local governments, declaring the non-remittance of funds by the 36 states as unconstitutional.
Mr. Kamarudeen Ogundele, Special Adviser to the President on Communication and Publicity in the Office of the Attorney-General of the Federation and Minister of Justice, confirmed that copies of the judgment have been forwarded to the Ministry of Finance and other relevant agencies for execution.
Ogundele emphasized that the Ministry of Justice’s role in the matter is complete, stating, “We have received the judgment and disseminated it to the appropriate bodies for implementation. The Federal Allocation and Accounts Committee (FAAC) and the Ministry of Finance are responsible for carrying out the next steps.”
He further clarified, “The Supreme Court’s ruling is unequivocal: only local governments with democratically elected chairmen are entitled to receive direct allocations. The judgment reinforces that local governments are an independent tier of government in Nigeria and cannot be treated as extensions of state governments. The directive is clear on who the rightful beneficiaries are.”
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