RateCaptain
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
No Result
View All Result
Subscribe
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
No Result
View All Result
RateCaptain
No Result
View All Result
Home Economy

FG, Governors Agree on Three-Month Delay for Local Government Autonomy

Akpan Edidong by Akpan Edidong
August 13, 2024
in Economy, Politics
Reading Time: 2 mins read
A A
0
FG Records N13.33bn Revenue Shortfall from Gas Flaring Penalties
Share on FacebookShare on TwitterShare on WhatsappShare on Telegram

The Federal Government of Nigeria and state governors have reached an agreement to delay the implementation of financial autonomy for Local Governments (LGs) by three months. This decision, aimed at addressing concerns about salary payments and operational challenges, means that the direct transfer of funds to LG accounts will not commence until October 2024.

The agreement follows a significant Supreme Court ruling on July 11, 2024, which upheld the financial independence of Nigeria’s 774 Local Governments. The court ruled that state governors could no longer control funds meant for these councils, and directed that allocations be paid directly into the LG accounts by the Accountant-General of the Federation. The judgment was widely praised as a positive step towards restructuring governance in Nigeria.

AlsoRead

NNPC Reduces Petrol Price to N1,299 as Competition Intensifies with MRS and Depots

Brent Crude Falls More Than $16 in Eight Sessions as US and Iran Signal Diplomacy

Seplat Agrees to Sell 10% Stake in NNPC Joint Venture for $281.6 Million

The Supreme Court’s decision was the culmination of legal efforts initiated by the Attorney-General of the Federation, Lateef Fagbemi (SAN), who filed a suit in May 2024 to reinforce the autonomy of Local Governments as enshrined in the constitution. The suit also sought to prevent state governors from dissolving democratically elected local government councils and replacing them with caretaker committees, a practice deemed unconstitutional.

Under the administration of former President Muhammadu Buhari, the Nigerian Financial Intelligence Unit (NFIU) had already introduced a regulation in June 2019 that prohibited transactions on State and Local Governments Joint Accounts, directing funds directly to the LGs. This regulation also limited cash withdrawals from LG accounts to N500,000 per day, with penalties for non-compliance. However, the regulation faced opposition from state governors, leading to its eventual suspension.

Despite the Supreme Court’s ruling, state governors have expressed concerns about the practical implications of immediate LG autonomy. Following the court’s decision, the Nigeria Governors’ Forum, led by Kwara State Governor AbdulRahman AbdulRazaq, voiced relief that the judgment would ease the financial strain on state governments, which often had to bail out Local Governments.

Governor AbdulRazaq, speaking after a meeting with President Bola Tinubu on July 12, emphasized that the judgment was a welcome development for the governors, who had long shouldered the financial burden of supporting Local Governments. However, the delay in implementing the autonomy reflects ongoing negotiations and the need for a gradual transition to ensure that Local Governments can operate effectively under the new arrangement.

As the October deadline approaches, stakeholders will be watching closely to see how the Federal Government and state governors navigate the complexities of enforcing Local Government autonomy across the country.

Tags: #NigeriaFederal Governmentfinancial autonomyState GovernorsSupreme Court
Previous Post

Nine Companies Secure $25.76 Million in CBN’s Retail Dutch Auction for Loan Repayments

Next Post

Asian Markets Climb as Investors Await US Inflation Data

Related News

NNPCL to Supply Dangote Oil Refinery With Crude Oil For Testing

NNPC Reduces Petrol Price to N1,299 as Competition Intensifies with MRS and Depots

by Akpan Edidong
August 5, 2026
0

The Nigerian National Petroleum Company Limited has cut the pump price of petrol from N1,335 to N1,299 per litre, a...

Oil Prices Reach $90 Following Supply Reduction by Saudi Arabia and Russia.

Brent Crude Falls More Than $16 in Eight Sessions as US and Iran Signal Diplomacy

by Akpan Edidong
August 3, 2026
0

Brent crude has dropped more than $16 per barrel over eight trading sessions, wiping out most of the gains sparked...

Seplat Energy revenue grows by 29.8% in 2022

Seplat Agrees to Sell 10% Stake in NNPC Joint Venture for $281.6 Million

by Akpan Edidong
July 31, 2026
0

Seplat Energy Plc has entered a legally binding agreement to dispose of a 10% working interest in its joint venture...

FG Secures $1.95 Billion in World Bank Loans Amidst Debt Concerns

Nigerian Issuers Pay Up to 20% to Raise Debt in First Half of 2026

by Victoria Attah
July 28, 2026
0

Corporate borrowers and state-backed entities paid coupon rates as high as 20% to access Nigeria’s debt capital market in the...

Next Post
Nigeria’s Stock Market Records N1.81 Trillion Gain in July.

Asian Markets Climb as Investors Await US Inflation Data

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

FCMB Group Plc Reports Remarkable 108% Year-on-Year Profit Growth in 9M 2023

Court Dismisses N100 Million Privacy Breach Suit Against FCMB

August 6, 2026
NDIC Begins Verification Exercise for Insured Depositors of Defunct Peak Merchant Bank.

NDIC Begins Payments to Depositors of 46 Closed Microfinance Banks

August 6, 2026

Popular Story

  • FCMB Group Plc Reports Remarkable 108% Year-on-Year Profit Growth in 9M 2023

    Court Dismisses N100 Million Privacy Breach Suit Against FCMB

    0 shares
    Share 0 Tweet 0
  • Canada Names Eight Firms That Can Hire Nigerians Without LMIA 

    0 shares
    Share 0 Tweet 0
  • NDIC Begins Payments to Depositors of 46 Closed Microfinance Banks

    0 shares
    Share 0 Tweet 0
  • 31 Nigerian States Grapple with N2.57 Trillion Domestic Debt Amid No Foreign Inflows

    0 shares
    Share 0 Tweet 0
  • Nigerian Firms Rebound Strongly in 2025 After Naira Devaluation Losses

    0 shares
    Share 0 Tweet 0

RateCaptain

We bring you the most accurate in new and market data. Check our landing page for details.

  • Home
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Disclaimer
  • Cookie Policy
  • Contact Us

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

No Result
View All Result
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

RateCaptain
Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
  • Manage options
  • Manage services
  • Manage {vendor_count} vendors
  • Read more about these purposes
View preferences
  • {title}
  • {title}
  • {title}
?>