By Habeeb Ibrahim
Months after the Supreme Court ruled in favor of financial autonomy for Nigeria’s 774 local government areas, the direct payment of their allocations remains stalled due to technical and administrative constraints.
BlackBox Nigeria had earlier reported that the much-anticipated direct transfers, scheduled to begin in January 2025, failed to take off due to the absence of dedicated local government accounts with the Central Bank of Nigeria (CBN). The CBN had instructed all local government chairmen to set up these accounts as a prerequisite for direct disbursement, but the process has yet to be completed.
As a result, the funds continue to be routed through the Joint Accounts Allocation Committee (JAAC), a system that has long been criticized for allowing state governments to control local government finances. The delay has sparked concerns among governance advocates, who argue that it undermines the Supreme Court’s ruling and leaves local governments financially crippled.
At a pre-ministerial press briefing in Abuja on Tuesday, 11th February, 2025, the Minister of Information and National Orientation, Mohammed Idris, acknowledged the setback but attributed it to the complexities of setting up a seamless disbursement system.
“The Office of the Accountant General of the Federation (OAGF) cannot proceed with the transfers without ensuring that all local governments have properly structured accounts,” Idris explained, assuring Nigerians that efforts are underway to resolve the bottlenecks.
Despite these assurances, stakeholders remain skeptical, pointing to the government’s repeated delays in implementing financial autonomy for local governments. The continuous reliance on JAAC, they argue, allows state governments to withhold or divert funds meant for grassroots development.
Beyond the financial autonomy issue, Idris also addressed Nigeria’s economic challenges, particularly rising food prices. He ruled out price controls, stating that the government prefers a market-driven solution through large-scale agricultural investments.
“Increased food production will naturally stabilize prices,” he said, pointing to ongoing farming initiatives in states like Kebbi, Jigawa, and Benue.
The minister also highlighted the government’s legislative achievements, including the 2024 Electricity Act, which now allows states to develop their own regulated electricity markets.
On education, he revealed that the National Education Loan Fund (NELFUND) has disbursed ₦32.8 billion in student loans to over 169,000 beneficiaries.
To improve transparency, the government will begin weekly ministerial press briefings, with different ministers addressing national concerns ahead of President Bola Tinubu’s second anniversary in office, themed “Year of Consolidation of President Tinubu’s Reforms.”
With no clear timeline for resolving the local government autonomy issue, stakeholders continue to press for urgent action, warning that further delays could erode trust in the government’s commitment to decentralization.
