Days After Suspending Gov. Fubara, FG Releases Withheld Local Government Funds to States, Gives Reasons for Delay

The Federal Government has disbursed the withheld local government allocations for January and February to all 36 states, citing logistical and administrative challenges as the cause of the initial delay. This move follows the Supreme Court’s directive affirming that local governments should receive funds directly from the Federation Account Allocation Committee (FAAC). However, the timing of the release, just days after a state of emergency was declared in Rivers State, has sparked speculation about whether the decision was politically targeted at the suspended governor.

A senior official at the Office of the Accountant-General of the Federation (OAGF), speaking anonymously, confirmed the release, explaining that while the Supreme Court ruling mandates direct allocation to local governments, the current system remains a temporary arrangement due to practical constraints. He further stated that the FAAC is processing March allocations, expected to be released to all three tiers of government soon.

Amid the nationwide disbursement, Rivers State has drawn particular attention. Former Anambra State Governor Peter Obi criticized the decision, calling it a violation of the Supreme Court ruling. He argued that the court had explicitly barred the release of Rivers State’s funds until a valid Appropriation Act was passed by the House of Assembly. In a tweet, Obi condemned the move as an unconstitutional act that disregards judicial authority, warning that it sets a dangerous precedent.

In response, government sources maintained that the disbursement was lawful and applied to all states, not just Rivers. They asserted that the Supreme Court judgment did not explicitly prohibit such payments to state governments or their appointed administrators. The official also clarified that the current administration, which took office after the judgment, was not in breach of the ruling, as the restrictions applied to the previous government.

The Rivers State situation remains contentious, with critics questioning whether the allocation was strategically timed to benefit the appointed Sole Administrator rather than the suspended governor. As political and legal debates continue, the Federal Government insists it is working toward a long-term solution that ensures local governments receive their funds directly, as required by the Supreme Court.