The Presidency has announced that from the end of January, local government areas across Nigeria will begin receiving their allocations directly from the Federal Allocation Account Committee.
This move is seen as a major milestone in the push for local government autonomy.
The Special Adviser to the President on Media and Public Communications, Sunday Dare, disclosed this development during an interview on Arise News on Thursday night. He affirmed President Bola Tinubu’s commitment to implementing the Supreme Court’s landmark judgment of July 2024, which declared state control over local government funds unconstitutional.
In the ruling delivered by Justice Emmanuel Agbim, the Supreme Court mandated that allocations to local governments should either be paid directly or through states. However, due to the ineffectiveness of the latter, the court ordered direct payments to local councils.
The judgment stemmed from a suit filed by the Attorney General of the Federation, Lateef Fagbemi (SAN), advocating for the financial autonomy of Nigeria’s 774 Local Government Areas.
Despite the ruling, implementation was delayed to ensure the establishment of proper mechanisms. Dare confirmed that these arrangements are now complete, enabling local governments to start receiving their funds directly by the end of January.
“We have a President who ensures local government autonomy. I spoke to a local government chairman, who said, ‘Oh, I will be getting N2.9 billion, instead of the N200 million I was getting before.’ From the end of this month, LG will receive the money directly,” Dare said.
Dare also emphasised the need for closer scrutiny of financial management at the state and local government levels.
“One state collected N499 billion last year—nearly four times its previous allocation—yet there’s little to show for it,” he noted.
He urged Nigerians to shift some of the criticism from the Federal Government to the states and local governments, highlighting the importance of holding all tiers of government accountable.
“The framers of our constitution created the three tiers of government for a reason. It’s time to hold states and local governments accountable,” Dare added.
The implementation of this policy is expected to empower local governments to address developmental challenges directly, ensuring greater efficiency and transparency in their financial operations.