The Minister of Finance, Wale Edun, disclosed on Thursday that the Federal Government has not yet commenced the direct payment of monthly allocations to local governments due to some "practical impediments."
Edun made this announcement during the quarterly media briefing on recent economic activities in the country. This clarification comes weeks after the Supreme Court ordered the Nigerian Government to pay allocations directly into local government accounts.
The Supreme Court had declared it illegal for state governments to receive allocations on behalf of local governments. The landmark judgment, delivered by Justice Emmanuel Agim, emphasized that this practice, which contravenes the financial autonomy of local governments, has persisted for over two decades.
The court's decision mandates that all allocations from the Federation Account be paid directly to the 774 local government councils across the country, rather than being funneled through state governors.
However, Edun explained that the judgment is yet to be handed over to the Attorney General of the Federation (AGF) for proper study and implementation. He mentioned that the Federal Government has established a committee to examine the practicability of the judgment.
"The actual proceeding has not been handed down to the AGF," Edun stated.
Governor Sim Fubara of Rivers State also commented on the matter, declaring on Friday that the worst is over and affirming his administration's commitment to good governance.
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