The Minister of Finance, Wale Edun, has revealed that the Federal Government is still unable to disburse monthly allocations to local governments due to unresolved practical issues.
This announcement comes weeks after the Supreme Court ruled that the Nigerian Government must directly pay allocations to local government accounts, bypassing state governments.
The landmark judgment emphasized the importance of financial autonomy for local governments, a principle that has been disregarded for over two decades, according to Daily Post.
He revealed that a committee has been established to examine the feasibility of implementing the Supreme Court’s decision.
However, the judgment has not yet been forwarded to the Attorney General of the Federation for thorough review and implementation.
The Federal Government is mandated to pay allocations from the Federation Account directly to the 774 local government councils nationwide, rather than channeling them through state governors, as per the Supreme Court’s ruling.
Edun explained that the development is due to some “practical impediments”.
“The actual proceeding has not been handed down to the AGF,” Edun said.