In light of the Supreme Court’s interpretation regarding the full autonomy of Local Governments (LGs), it is important to recognize that LG accounts are currently not linked to the Federal Government’s Treasury Single Account (TSA) as mandated.
The Federal Government will, in due course, instruct the 774 Local Government Areas (LGAs) across the federation to open or link their accounts to the Federal Government’s TSA within 90 days of the notice. This action will effectively separate LGA accounts from their respective state accounts.
During the transitional period, state governments will continue to oversee the financial affairs and expenditures of the LGA councils until all necessary requirements for full LG autonomy are fulfilled, solidifying the LGAs’ status as the third tier of government.
For the 21 states without elected Council Chairmen, state governments will continue to receive allocations directly into their state accounts. However, these funds will be supervised by the Heads of Local Government Administrations (HLGAs) and Treasurers, under the control of the existing Caretaker Committee Chairmen, for the 90-day period. This measure ensures that LG workers receive their wages while state governments conduct local government elections.
This directive also applies to the Federal Capital Territory (FCT).
