The federal government has explained why the Federation Account Allocation Committee (FAAC) failed to obey the Supreme Court judgment directing that allocation from the federation account be paid directly to local government accounts.
The disclosure was made by the Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun.
Edun attributed the delay to the inability of the Attorney General of the Federation to obtain a certified true copy of the Supreme Court judgment. He assured that once the judgment is received, payments will be made directly to local governments.
The Supreme Court had affirmed the financial autonomy of Nigeria’s 774 local governments, directing that allocations be paid directly to their accounts from July 11. However, findings revealed that the recent payment by FAAC was made to the state and local governments’ joint account controlled by governors.
Edun said, “As far as the Supreme Court ruling on local governments, Mr. President, as a democrat believes in federalism, he believes in fiscal federalism, he fought for it as a state governor. And so what has come to pass now is a new regime, a new fiscal regime where through the state joint local government account funding will go directly to local governments.
There is a committee composed by the federal honorable Attorney General as well as representatives of the local governments, the states, and of course, the federal government within the context of the Federation Account Allocation Committee. That is the practicality of moving to what the Supreme Court has said.
“There are impediments, practical impediments to immediate implementation, such as the fact that and the governments or governors have moved immediately to hold local government elections because the funds have to go to elected governments, but it’s also in practical terms.
There was a Federal Account Allocation Committee meeting just last week, but it could not get implemented because in fact, the judgment, the actual proceedings had not been handed down. They were not in the hands of the Attorney General for him to start implementing. So what is going to happen is on the presidency that believes in the rule of law, the supreme court judgment on local governments will be faithfully implemented.”
A total of N1.35 trillion was shared among the Federal Government, States, and Local Government Councils last week, with the Federal Government receiving N459.77 billion, States receiving N461.97 billion, and Local Government Councils receiving N337.019 billion.