Tinubu administration postpones implementation of LG financial autonomy until October

President Bola Tinubu’s administration has reached an agreement with the 36 state governors to delay the implementation of financial autonomy for the 774 local government councils until October 2024.

This decision, announced on Monday, follows a federal and state government consensus to impose a three-month moratorium on local government autonomy. The delay is intended to address concerns about the potential impact on salary payments and the operational viability of local governments.

The postponement is designed to allow stakeholders time to address these issues and develop strategies to ensure a smooth transition to financial autonomy. The government has committed to using this period to resolve potential challenges.

This decision comes just a month after the Supreme Court ruled that funds allocated to local governments must be paid directly to them, as managed by democratically elected officials. On July 11, 2024, Justice Emmanuel Agim delivered a landmark ruling declaring it unconstitutional for state governments to withhold or use funds meant for local governments without directly transferring them, as required by Section 162(3) of the Constitution. The ruling aims to promote decentralization and grassroots development by ensuring local governments receive their rightful allocations.