The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has stated that the Supreme Court’s proceedings granting financial autonomy to Local Governments is yet to be conveyed to the Attorney-General of the Federation to examine and put into effect.
This disclosure was made by Edun while addressing pressmen in Abuja on Thursday, according to The Punch.
He also said that the federal government’s revenue for the first half of 2024 has surpassed its financial targets.
A seven-man panel of the Supreme Court made the landmark decision on July 11, 2024, which was, however, opposed by some state governors.
Edun clarified that further actions will be taken after all the information was available, adding that the process was still in its early stages. A committee of the Federal Government was established to assess the judgment’s practicability.
“The actual proceeding has not been handed down to the AGF,” the finance minister stated.
This means that until the committee has had a chance to thoroughly examine the Supreme Court’s proceedings, the direct disbursement of funds to Local Governments—which was originally anticipated to start at last week’s monthly meeting of the Federation Account Allocation Committee—will not take place.
Edun said, “The President is a democrat, he believes in federalism, he believes in fiscal federalism. What has come to pass now is a new regime, a new fiscal regime, where through the state joint Local Government account, funding will go directly to the Local Governments.”
According to Edun, a commission made up of the Attorney General, officials from local, state and federal government, is working on the implementation. He did point up certain practical difficulties, such as the requirement that the payments be received by duly elected Local Government officials.
The Minister highlighted the Federal Government’s accomplishments in fiscal management and revenue generation, given difficult global economic conditions, while also highlighting other significant accomplishments and strategic projects.
He said, “I am pleased to report that our efforts have yielded tangible results. Aggregate Federal Government revenue for the first half of this year has more than doubled compared to the corresponding period in 2023.”
He credited this accomplishment to the adoption of strict fiscal policies and changes meant to improve the effectiveness of revenue collection in a number of industries.
Edun underscored the diversification of revenue sources away from oil-dependent income, noting that non-oil revenues in the same period were 30 per cent higher than the budgeted expectations.
“This underscores our commitment to reducing reliance on volatile oil revenues and expanding our tax base,” he added
