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Why FG is yet to pay allocation directly to LGs

Despite the Supreme Court’s ruling over two months ago affirming the financial autonomy of local governments, the federal government continues to channel council allocations through state governments.

In response, the Incorporated Trustees of the Association of Local Governments of Nigeria (ALGON) have issued a legal threat, warning to sue the Forum of Commissioners for Finance of Nigeria for failing to comply with the court order to pay allocations directly to 774 local governments.

According to a source quoted by Punchng, the delay in implementing the ruling is due to “practical impediments.” The federal government is reportedly struggling with the logistics of implementing the financial autonomy for local government areas and is seeking a political solution....Read Full Article [Click Here>]

The source stated, “The Federal Government and the states are looking for a political solution to manage the fallout of the Supreme Court judgment. The first step is the three-month moratorium on the judgment. For the next three months, the LG allocation will still be paid into the joint account with the respective states, while a permanent solution that will serve the objectives of financial autonomy is worked out.”

Source: Leadership NG

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