*Local governments expect October allocations as unions push for enforcement*
As the inter-ministerial committee prepares to submit its report on the Supreme Court’s ruling regarding Local Government Area (LGA) autonomy, state governors have intensified efforts to delay its enforcement. The 10-member panel, led by George Akume, Secretary to the Government of the Federation, is expected to submit its findings by October 13.
The Supreme Court ruled in July 2024 that the 774 LGAs in Nigeria should have financial autonomy, blocking state governors from controlling funds meant for the councils. The ruling followed a 2019 Nigerian Financial Intelligence Unit (NFIU) regulation banning the practice of state and local governments sharing joint accounts, which allowed governors to dominate LG funds.
In response to this judgment, the Federal Government created an inter-ministerial committee in August to oversee the implementation of LG autonomy. The committee, which includes key figures such as Finance Minister Wale Edun and Central Bank Governor Olayemi Cardoso, aims to ensure local governments receive their federal allocations directly.
Despite President Bola Tinubu’s commitment to uphold LG autonomy in his Independence Day speech, governors are reportedly lobbying against immediate implementation, arguing it will disrupt state control over local resources. However, the ministries of finance and justice are said to be finalizing details for enforcing the court’s decision.
Civil society organizations and the National Union of Local Government Employees (NULGE) are urging swift implementation. NULGE President Hakeem Ambali expressed confidence that the Supreme Court’s ruling will soon be enforced, while groups like the Centre for Accountability and Open Leadership (CACOL) condemned governors for attempting to maintain a “stranglehold” on LG funds.
Local government officials in states such as Gombe and Kwara are preparing for direct allocations from the federal government, with some having already opened accounts for this purpose. However, uncertainty remains regarding when these changes will take full effect.
Amid growing pressure for reform, governors like Seyi Makinde of Oyo State have denied opposition to LG autonomy, stressing their commitment to strengthening local government structures. However, critics argue that further delays risk undermining the rule of law and transparency in governance.
