Council Autonomy Crisis: N2tn LG Funds Diverted As ALGON And NULGE Fight Back

Council Autonomy Crisis: N2tn LG Funds Diverted As ALGON And NULGE Fight Back

In a stunning development, the Federation Accounts Allocation Committee (FAAC) disbursed a staggering N2.08 trillion to Local Government Councils (LGCs) between July and December 2024. However, despite a pivotal Supreme Court ruling in July 2024, granting full financial autonomy…Council Autonomy Crisis: N2tn LG Funds Diverted As ALGON And NULGE Fight Back

to Nigeria’s 774 local councils, these funds were still channeled into state government accounts, a move that has sparked outrage among local government officials and unions.

The Supreme Court’s landmark decision mandated that allocations meant for the local governments be paid directly into their accounts, bypassing state governments. This was intended to promote autonomy and ensure proper utilization of funds. However, months later, the Federal Government has yet to implement this directive, leaving many questioning its commitment to enforcing the court’s judgment.

Finance Minister Wale Edun explained that “practical impediments” were hindering the direct payments to local governments, and a committee has been established to assess the feasibility of the ruling. Challenges, such as concerns about salaries and operational viability, have been cited as reasons for the delay.

During the six-month period, the total revenue distributed was N8.351 trillion, with local government allocations totaling N2.075 trillion—approximately 24.9% of the total. Despite these large disbursements, local governments have yet to receive their funds as per the Supreme Court’s directive.

For instance, in December 2024, the total distributable revenue surged to N1.727 trillion, with local governments receiving a significant N402.553 billion—a sharp 13.2% increase from the previous month. However, the question remains: will the government ever fulfill its promise to implement the ruling?

Local government unions, including the Association of Local Governments of Nigeria (ALGON) and the National Union of Local Government Employees (NULGE), have expressed frustration with the federal government’s failure to enforce the ruling. ALGON’s Secretary-General, Mohammed Abubakar, criticized the delay, saying the government’s reluctance is preventing local government autonomy from succeeding.

The unions argue that direct allocation payments would allow local councils to manage their resources independently, fostering grassroots development. But they also face challenges from governors, who claim the current system, where they control the funds, is necessary to meet local government expenses.

Despite these challenges, ALGON and NULGE insist that the Supreme Court’s decision must be upheld, and local governments must be empowered to manage their own resources without interference from state authorities.

As the deadline for implementation continues to slip by, local government officials remain in the dark, awaiting the federal government’s next move.

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