Tinubu's govt delay payment for 3 months, reason, details emerge

• Although the federal government is yet to release funds to the 774 local government chairmen but has reached an agreement regarding payment with the state governors
• Meanwhile, the agreement for a three-month delay on LG financial allocations raises concerns about how local governments will manage their operations and salary payments during this period
• However, the minister of finance Wale Edun, has calmed the tension and explained FG's next step on the matter amid negotiations on payment

Legit.ng journalist Esther Odili has over two years of experience covering political parties and movements

As of Monday, August 12, reports disclosed that the federal government and state governors might have reached a three-month moratorium agreement on the Local Government's (LG) autonomy over concerns arising from its impact on salary payments and operational viability.

The Punch reported on Tuesday, August 13, that this development means local governments may wait until October 2024 before implementing the law requiring direct payment into their respective accounts.

On July 11, 2024, the Supreme Court delivered a landmark judgement affirming the financial autonomy of the 774 LGs in the country and also directed the Accountant-General of the Federation to pay LG allocations directly to their accounts, as it declared the non-remittance of funds by the 36 states unconstitutional.

LG autonomy: FG, govs reach three-month agreement on allocations

However, more than a month after the Supreme Court judgement, the order of the apex court had not been complied with.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

The Association of Local Governments of Nigeria, however, waited in vain to get the money (ALGON) paid directly into the LG accounts receiving N337.019 billion, The New Telegraph reported.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed that Edun attributed the delay to the proceedings of the Supreme Court, which had not been communicated to the Attorney General of the Federation for proper study and implementation.

But as of July 25, the federal government had not yet commenced direct payment of the monthly allocations to the 774 Local Government Areas.

LG allocations: Why the delay? FG's next step

Multiple sources close to the Nigerian Governors Forum (NGF) and the Federal Government, disclosed on Monday, August 12, that President Bola Ahmed Tinubu's led government was in a fix on how to proceed with the implementation of the judgment on the financial autonomy for local governments.

“From what I know from the Nigeria Governors’ Forum, 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 as envisaged by the Supreme Court judgment is worked out,” one of the sources told The PUNCH.

Supreme Court gives verdict on LG chairmen's tenure

Legit.ng earlier reported that the Supreme Court said that the local government chairmen's tenure lasts every four years like the presidents and governors.

Justice Mohammed Garba of the apex court gave the ruling in a judgment on local government autonomy delivered on May 11, 2024.

The court ruled that it is illegal for the states to control the funds of local governments as it undermines their statutory functions.

Source: Legit.ng