Logistics and administrative challenges accounted for the non-release of withheld local government allocations to the 36 state governments, The Nation learnt yesterday.
The Federal Government authorised the disbursements for the January and February shares, pending the full implementation of direct allocations to the councils in line with the Supreme Court’s pronouncement.
But a former Anambra State governor, Mr. Peter Obi, queried the rationale behind the release of funds to the Rivers State Government, following an apex court ruling that bars the OAGF from doing so until the representation of budget to the House of Assembly for approval.
Obi, who tweeted, described the release of Rivers funds as unlawful and a direct challenge to the authority of the highest court.
In its verdict, the apex court upheld the constitutional right of local governments to receive funds directly from the Federation Account Allocation Committee (FAAC).
A senior official at the Office of the Accountant-General of the Federation (OAGF), who spoke to The Nation under the condition of anonymity, confirmed the release of the funds to the state governments.
According to the official, the withheld funds were finally remitted a few days ago to all state governments, pending the full implementation of direct allocations to local government areas in line with the Supreme Court’s pronouncement.
The official explained that while federal and state governments had already received their portions of the January and February 2025 FAAC allocations, local government funds for those months were initially withheld due to the need to address compliance with the Supreme Court’s directive.
“However, those specific local government allocations have now been disbursed to the states,” the source stated.
He added: “The federal government has started releasing local government allocations to state governments. It’s to the state governments they disbursed to now.”
The clarification indicates that although the Supreme Court judgment proclaims that local governments should receive their funds directly, the ongoing release of funds through state governments “is a temporary arrangement due to logistic and administrative challenges.”
The source further revealed that the FAAC is currently processing the allocations for March, which are expected to be released to all three tiers of government within the week.
“They are still working on it. They have not released the March allocations to the three tiers of government,” the source noted.
The delay in releasing the January and February local government funds was attributed to the complexities surrounding the implementation of the Supreme Court judgment.
The Federal Government, in collaboration with other relevant stakeholders, is working to ensure that all local governments in the country have dedicated bank accounts that will allow them to receive their allocations directly.
Currently, many local governments do not have such accounts in place, which has necessitated the continued channeling of funds through state governments as a transitional measure.
On the developments specific to Rivers State, the source clarified that the recent disbursement of funds was not limited to that state alone, but was part of a nationwide release to all state governments.
However, Rivers State received additional attention due to the political and administrative emergency in the state at the time of the release.
“They released the local governments’ allocations to the states last week. It’s not only Rivers State. Maybe, the release this time gave Rivers State special attention because of the emergency situation in the state,” the official remarked.
The source added that all local government allocations had been withheld across the country, and the recent release was comprehensive, covering every state.
“The Accountant-General of the Federation (AGF) was not in breach of the Supreme Court ruling”, the source insisted, noting that the administration in place at the time of the judgment had already changed by the time the funds were disbursed.
“There was no disobedience to the Supreme Court ruling because the former government was no longer in office when the money was released. The release was made under the emergency government now in place, and the government that the Supreme Court judgment applied to is no longer in office,” the source stated.
Responding to criticisms former Anambra State Governor Peter Obi regarding the release of local government funds, the official argued that the Supreme Court judgment did not expressly prohibit the release of local governments funds to state governments or their designated administrators.
“The Supreme Court judgment he (Peter Obi) referred to did not cover the local government allocation,” the source said.
The official maintained that the release of funds to the Sole Administrator, particularly in the case of Rivers State, was in line with established practice.
“The funds were released to the Sole Administrator in line with the tradition of releasing local governments’ allocations to the governor or, in this case, the sole administrator,” he explained.
In his tweet, Obi said: “What is happening in the country today as it relates to River State is an aberration, unknown to our constitution and must be condemned by every discerning mind.
“What we are witnessing in Rivers State is a brazen disobedience and disregard for the rule of law and our democratic principles.
“The decision to release statutory allocations to an appointed Sole Administrator, despite a standing order of the Supreme Court, is not just unlawful — it is a direct challenge to the authority of the highest court of our country.
“The Supreme Court had explicitly barred the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation (AGF) from releasing these funds until a properly constituted House of Assembly passes a valid Appropriation Act.”
“Yet, we see a situation where this order is being ignored. This raises serious moral intentions, and questions of what is happening in Rivers State.
“By disregarding the judgment of the Supreme Court, those involved are setting a dangerous precedent. The CBN and AGF, institutions meant to uphold the law, should not be complicit in this disregard for our judiciary.
“We cannot build a nation where those who swore oaths to uphold our constitution and obey the laws are doing the opposite.” (The Nation)
