Supreme Court Judgment: There are Impediments to Direct Payments to LGs, Says Wale Edun

Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has revealed that there are certain unspecified obstacles preventing direct payments to local governments after the recent Supreme Court decision.

The court had determined that federal funds allocated to local councils should be sent directly to them, rather than being deposited into state joint accounts for local governments across the 36 states.

While the minister did not elaborate on these obstacles, he mentioned that the federal government plans to issue a much-anticipated $500 million bond aimed at Nigerians living abroad within the next month.

Edun emphasized that the bond would provide an opportunity for Nigerians living overseas to invest their money back in Nigeria.

Discussing the current economic landscape, the minister highlighted significant advancements in the federal government’s financial management, pointing out a reduction in debt servicing costs and an increase in revenue from non-oil sources. He mentioned that the debt service ratio had fallen from 97 percent in June 2023 to 68 percent.

Details soon…