Local Government Autonomy: Anxiety in states over local govt allocations.

Presidency Committee meets this week on financial transition

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Local government workers in some of the states yet to conduct council elections by yesterday are now living in fear of the possible suspension of allocation to their councils from the federation account, THE NATION newspaper

The Supreme Court had in a recent ruling granted the local government financial autonomy and specifically ordered that the councils’ share of allocation from the federation account be paid directly into their accounts.

The apex court also declared in the July 11,2024 landmark ruling that unelected councils will not be allowed to spend such allocations.

It declared the non-remittance of funds by the 36 states unconstitutional.

Consequent upon the court’s pronouncement, state governments, many of which were used to treating LG administration, especially council elections and funds with levity, pleaded with the federal government for a moratorium to hold elections

With the month coming to an end in another three weeks, all but eight of the 36 states have done so.

Three others –Kaduna, Kano and Cross River –have scheduled theirs for this weekend and the next.

Ogun and Abia will follow next month, Ondo will have its own in January 2025,Osun and Katsina in February while Zamfara and Nasarawa will come later.

However, LG workers in the states that are yet to meet the deadline for the conduct of elections are uncomfortable with the situation.

They fear that their salary may not be forthcoming should the federal government decide to withhold allocation to the defaulting states.

The Nation gathered yesterday that a Federal Government technical sub-committee is scheduled to meet later this week to chart the next steps for implementing the Supreme Court’s ruling on local government financial autonomy.

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A source in the Presidency confirmed to THE NATION Newspaper that an Inter-Ministerial Committee, established by the President, has been tasked with enforcing the court’s decision.

“They have met about three times and will meet again soon,” a source familiar with the issue said.

The Minister of Justice and Attorney General of the Federation, Mr. Lateef Fagbemi (SAN) is expected to provide clarification on the next course of action during the meeting.

The source said the SC ruling apparently shocked many of the state governors who had mounted a strong defense in court.

“The governors were not expecting the judgment, so they had to go back to the drawing board,” the source said.

The committee is yet to finalise its recommendations but once it does so,its proposals will be reviewed by key stakeholders, including the Minister of Finance, the Attorney General of the Federation, the Secretary to the Government of the Federation (SGF), and representatives of the Association of Local Governments of Nigeria (ALGON).

The final decision will then be presented to the President for approval.

The source said while discussions are still ongoing, the implementation plan for local government autonomy is still being developed.

 

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