The Federal Government and state governors have reached a consensus to postpone the implementation of the law granting financial autonomy to Local Governments for a period of three months.
This decision comes after concerns were raised regarding the potential impact of the law on salary payments and the operational viability of local governments. The stakeholders want to ensure a seamless transition and avoid any disruptions to essential services.
The Supreme Court had previously affirmed the financial autonomy of the 774 Local Governments in Nigeria, ruling that state governors could no longer control funds meant for the councils. This landmark ruling paved the way for local governments to manage their finances independently.
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However, the Nigerian Governors’ Forum had opposed a regulation that directed funds to be sent directly to local government accounts. This opposition led to a stalemate, and the status quo was maintained until the Attorney-General of the Federation intervened.
The Attorney-General filed a suit to strengthen local government autonomy, which ultimately led to the agreement to delay implementation. This delay will provide time for stakeholders to address concerns and ensure a smooth transition.
The postponement will allow for necessary preparations to be made, ensuring that the transition to financial autonomy does not disrupt essential services and salary payments. This is a critical step towards decentralizing power and granting local governments greater control over their finances.
In conclusion, the three-month delay will enable stakeholders to work together to ensure a successful implementation of the law, ultimately leading to more effective and autonomous local governments that can better serve their communities.