FG to Withhold Allocations from LGs Without Elected Chairmen Starting October

In adherence to a recent Supreme Court ruling on local government autonomy, the federal government of Nigeria will halt allocations to local government areas (LGAs) lacking democratically elected chairmen by October 2024. This decision, announced by an official from the Federal Ministry of Justice, follows a three-month moratorium granted to states starting in July to conduct elections and align with the court’s directive.

The Supreme Court’s landmark judgment on July 11, 2024, affirmed the financial independence of the 774 LGAs across the country, prohibiting state governors from controlling funds allocated to these councils. Additionally, the court mandated the Accountant-General of the Federation to disburse funds directly to the accounts of the local governments, ruling that the states’ previous practice of withholding these funds was unconstitutional.

Kamarudeen Ogundele, Special Adviser to the President on Communication and Publicity in the Office of the Attorney-General of the Federation and Minister of Justice, confirmed in a recent conversation that copies of the judgment have been circulated to the Ministry of Finance and other relevant agencies for enforcement. Ogundele emphasized that while the Ministry of Justice has fulfilled its role in the process, the implementation now lies with the Ministry of Finance and the Federation Account Allocation Committee (FAAC).

“The judgment clearly states that only LGAs with democratically elected chairmen will benefit from the allocations. The Supreme Court has made it clear that local governments are the third tier of government in Nigeria and must not be run as extensions of state governments,” Ogundele added.

As the deadline approaches, states without elected local government leadership face the risk of losing federal funding, a move expected to enforce compliance with the court’s decision and strengthen local government autonomy across the nation.