The Nigerian government has yet to pay allocations directly to local governments due to the following reasons.
Practical Impediments: The Minister of Finance, Wale Edun, stated that there are practical issues that need to be addressed before the government can start paying allocations directly to local governments.
Supreme Court Judgment: The Supreme Court recently ruled that it is illegal for state governments to receive allocations on behalf of local governments, and the government is yet to implement this judgment.
Committee Setup: A committee has been set up by the federal government to look into the practicality of the Supreme Court’s judgment and how to implement it.
Attorney General’s Involvement: The judgment is yet to be handed over to the Attorney General of the Federation (AGF) for proper study and implementation.
Federation Account Allocation Committee (FAAC) Meeting: The monthly meeting of FAAC was held last week, but the government is yet to start the direct disbursement of funds to local governments.
