Barring any last-minute opposition from state governors, the direct payment of statutory allocations to Nigeria’s 774 Local Government Areas will commence in November 2024, as confirmed by the National Union of Local Government Employees (NULGE) President, Hakeem Ambali, in an interview on Sunday.
This move marks a major milestone in implementing local government (LG) autonomy, a mandate affirmed by the Supreme Court. The Economic and Financial Crimes Commission (EFCC) has pledged to track expenditures by LG chairmen to ensure accountability. The EFCC Chairman, Ola Olukoyede, emphasized that any misuse of funds would be met with prosecution, adding that the commission had expanded its presence nationwide to ensure compliance.
The implementation follows a landmark Supreme Court ruling in July 2024, which barred state governors from controlling LG funds. The Federal Government had initially delayed the process due to concerns over salary payments and operational challenges but has since established a 10-member inter-ministerial committee to ensure a smooth rollout.
While some states have yet to conduct local government elections, risking the seizure of their allocations, NULGE officials remain optimistic that the direct disbursement will take full effect by November.
Ambali stressed the need to avoid any loopholes, stating that the Ministry of Budget and National Planning had convened stakeholder meetings to facilitate the policy’s implementation. Meanwhile, NULGE has warned that states failing to implement LG autonomy should not receive federal allocations.
The EFCC, meanwhile, reiterated its commitment to holding LG officials accountable, with plans to closely monitor budget performances at the local level.
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