Local Governments in Nigeria to Receive Direct Allocations by January End

In a landmark move to promote local government autonomy, the Presidency has announced that local government areas (LGAs) across Nigeria will begin receiving their allocations directly from the Federal Allocation Account Committee (FAAC) by the end of January.

This announcement was made on Thursday evening during an interview with Sunday Dare, Special Advisor on Media and Public Communications to President Bola Tinubu, on Arise News.

Dare reaffirmed the administration's commitment to implementing the Supreme Court's landmark July 2024 ruling, which declared state control over local government funds unconstitutional.

The ruling, delivered by Justice Emmanuel Agbim, emphasized that funds allocated to local governments must be disbursed either directly to them or through states. The case was brought forward by Lateef Fagbemi, SAN, the Attorney General of the Federation, advocating for financial autonomy for Nigeria's 774 LGAs.

“The procedures have been finalized, and by the end of this month, local governments will start receiving their allocations directly,” Dare stated.

He cited an example of a local government chairman who anticipated receiving N2.9 billion instead of the N200 million previously allocated.

“We have a President who is committed to ensuring local government autonomy. One state collected N499 billion last year—nearly four times its previous allocation—yet there’s little to show for it,” Dare added.

The presidential spokesperson also highlighted the need for improved financial oversight at all levels of government.

“While the federal government often faces criticism, it’s equally important to scrutinize how states and local governments utilize their resources,” he noted.

Dare stressed the importance of the constitutional framework that establishes three tiers of government, urging Nigerians to hold all levels accountable for the efficient management of public funds.