The federal government’s failure to implement the Supreme Court ruling on local government autonomy raises profound concerns about its commitment to empowering grassroots governance and ensuring democratic accountability at the local level.
Development Diaries reports that despite the Supreme Court’s July 2024 judgment mandating direct allocation of funds to local government accounts, funds amounting to over two trillion naira from the Federation Accounts Allocation Committee (FAAC) between July and December 2024 were still channeled through state governments’.
According to a report by Punch, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the federal government is yet to commence direct payment to the respective local governments due to some ‘practical impediments’.
The Supreme Court’s July ruling, grounded in Section 162 of the 1999 Constitution, was hailed as a milestone, as it grants local governments direct control over their finances – an essential step toward driving grassroots development and strengthening governance at the community level.
However, this blatant disregard for the apex court’s ruling affects the independence of local governments and keeps them from providing important services to people at the local level.
The federal government’s delay in implementing direct payments has been attributed to ‘practical impediments’, as stated by Edun, however, this explanation appears insufficient six months after the ruling.
This is contrary to President Bola Tinubu’s promise of upholding the rule of law.
It is imperative for the federal government to clarify why it has not acted promptly on a landmark ruling that seeks to promote transparency, accountability, and autonomy in governance.
Nigerians deserve an explanation from the minister of finance regarding the specific obstacles preventing the implementation of direct payments to local governments.
According to the report, the federal government faced challenges implementing the ruling on local government financial autonomy, with concerns over its impact on salary payments and operational viability.
Now, given that the federal government has been made aware of these impediments for months, what practical solutions have been explored to address them?
The absence of accountability and transparency surrounding this issue casts doubt on the seriousness of the Tinubu-led government’s intentions to empower local governments.
Development Diaries calls on the Minister of Finance, Wale Edun, to publicly explain the so-called ‘practical impediments’ delaying the implementation of direct payments. A detailed account of challenges and steps being taken to address them should be provided to Nigerians without further delay.
The Ministry of Finance should immediately draft and publish a concrete timeline for implementing direct fund transfers to local government accounts, ensuring that this process begins no later than the first quarter of 2025.
