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

Foreign Exchange Supply Rises 20.5% to $8.94 Billion in 2025, CBN Data Show

Dangote Lowers Petrol Price to N1,325 a Litre Nine Days After N85 Increase

FG Raises N748.64 Billion from FGN Bonds as Borrowing Rates Ease

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

Naira depreciates to N755/$ in the parallel market.

Foreign Exchange Supply Rises 20.5% to $8.94 Billion in 2025, CBN Data Show

by Stephen Akudike
September 22, 2026
0

Nigeria’s foreign exchange supply increased by 20.5 per cent to $8.94 billion in 2025 from $7.43 billion in 2024, according...

Oil Marketers Dismiss Claims of Dangote Refinery Selling Fuel in Dollars

Dangote Lowers Petrol Price to N1,325 a Litre Nine Days After N85 Increase

by Akpan Edidong
September 22, 2026
0

Dangote Petroleum Refinery has reduced the ex-gantry price of Premium Motor Spirit by N25 a litre to N1,325. The cut...

FG Allocates N5.1 Billion for Presidential Yacht and N5.5 Billion For Student Loans

FG Raises N748.64 Billion from FGN Bonds as Borrowing Rates Ease

by Victoria Attah
September 17, 2026
0

The Federal Government raised N748.64 billion from its September 2026 domestic bond auction, with investors showing strong demand for both...

NEC Affirms CBN $3 Billion Loan for Naira Stability

Foreign Reserves Climb $12.76 Billion in a Year, Gain $708 Million in September

by Victoria Attah
September 17, 2026
0

Nigeria’s gross foreign exchange reserves rose by $12.76 billion year-on-year to $54.61 billion as of 14 September 2026, reinforcing 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

Leading Banks Struggle with Capital Deficits: Zenith Bank and Others Strive to Meet CBN Standards

Banking System Liquidity Falls N3.86 Trillion as CBN Open Market Operation Drains Cash

September 22, 2026
Naira depreciates to N755/$ in the parallel market.

Foreign Exchange Supply Rises 20.5% to $8.94 Billion in 2025, CBN Data Show

September 22, 2026

Popular Story

  • Dollar Index Loses Steam as Treasury Yields Drift Back to 4.8%

    Naira Strengthens to N1,329.80 per Dollar Officially and N1,390 on Parallel Market

    0 shares
    Share 0 Tweet 0
  • Banking System Liquidity Falls N3.86 Trillion as CBN Open Market Operation Drains Cash

    0 shares
    Share 0 Tweet 0
  • Dangote Lowers Petrol Price to N1,325 a Litre Nine Days After N85 Increase

    0 shares
    Share 0 Tweet 0
  • Foreign Exchange Supply Rises 20.5% to $8.94 Billion in 2025, CBN Data Show

    0 shares
    Share 0 Tweet 0
  • Oil Prices Rally 3% Amid Disruptions in Libya’s Top Oilfield

    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}
?>