Seven months after the Supreme Court’s landmark ruling on July 11, 2024, directing that local government areas (LGAs) should receive their allocations directly from the Federation Account, the decision remains unimplemented. This comes after the Federal Government had taken state governors to court for withholding LGA funds, claiming the allocations paid through states were not reaching the local governments.
In an interview with Honourable Hamisu Anani, the National Publicity Secretary and Plateau State Chairman of the Association of Local Governments of Nigeria (ALGON), he confirmed that LGAs have yet to begin receiving their allocations directly. Anani, who also serves as the Chairman of Wase Local Government Area in Plateau State, stated that while a committee has worked on addressing the issues surrounding the implementation, the financial autonomy for LGAs is still pending.
Anani emphasized the importance of ensuring that the Supreme Court’s decision leads to sustainable development at the grassroots level. “It is the wish of everyone, from the masses to the Federal Government, that local governments’ financial autonomy is fully implemented. This judgment aims to bring democracy dividends down to the grassroots,” he explained. However, he pointed out that there are several matters that must be addressed before full implementation, including primary healthcare, education funding, and other first- and second-line charges that local governments cover.
Despite the delay, Anani expressed optimism that the process could be completed soon. “We are expecting it possibly this month, as the committee has finished its work, and we are awaiting implementation.”
When asked about the ongoing issue of state governors using local councils to remove chairmen, especially after recent impeachments in Edo State, Anani noted that the situation is rooted in constitutional matters. The Supreme Court’s ruling had addressed the need for local government elections and financial autonomy, but Anani called for further constitutional reforms to address other issues, such as the Joint Allocation Account Committee (JAAC), which remains a contentious point.
He also argued that the current allocation formula, with only 23 percent of the revenue allocated to local governments, is insufficient for meaningful development at the grassroots level. “If we truly want development to come from the grassroots up, the allocation formula needs to be reviewed. The 23 percent allocation for 774 local governments is too small,” he stated, adding that the formula should be adjusted to allow for greater investment in local government development.
On the issue of local government elections, Anani reported that more than 30 states have successfully conducted elections, in line with the Supreme Court’s ruling. However, six states have yet to comply with the judgment. ALGON has urged these states to hold elections promptly to avoid further legal complications.
The ALGON Chairman reiterated the need for immediate action to ensure that local governments receive their financial allocations directly, which he believes will facilitate real development at the grassroots and improve the quality of governance in Nigeria’s LGAs.
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