The Federal Government has revealed reasons for the delays in funding local governments directly and giving them the much-awaited autonomy.
The federal government acknowledged the delay in implementing the direct funding for local governments while assuring Nigerians that efforts are underway to resolve the challenges.
Speaking at a pre-ministerial press briefing in Abuja on Tuesday, the Minister of Information and National Orientation, Mohammed Idris, reaffirmed the government’s commitment to ensuring financial autonomy for local governments but noted that administrative and technical processes were still being finalized.
Challenges in implementing direct funding
Despite the Supreme Court’s ruling in July 2024, which granted financial independence to the 774 local government areas, allocations are still being routed through state government accounts.
Idris explained that the delay stems from the need to establish structured accounts for each local government to enable seamless transfers.
“The Office of the Accountant General of the Federation cannot proceed with direct transfers until all necessary financial structures are in place,” he stated.
According to him, the government is working on the massive financial framework required to implement the policy correctly.
He assured Nigerians that the direct transfer system would soon be operational.
“We are confident that this process will be completed soon. The government is eager to ensure that local governments receive their allocations directly in the shortest possible time,” he added.
