Local Governments may receive direct allocations by January

The Presidency has hinted that from the end of January, local government areas across Nigeria will start receiving their allocations directly from the Federal Allocation Account Committee, a crucial move toward local government autonomy.

During an interview on Arise News on Thursday night, the Special Adviser to the President on Media and Public Communications, Sunday Dare, shared this update.

He reaffirmed President Bola Tinubu’s dedication to enforcing the Supreme Court’s landmark judgment from July 2024, which declared the state control over local government funds unconstitutional.

The Supreme Court, in a unanimous ruling delivered by Justice Emmanuel Agbim, concluded that local government allocations should be paid directly or via states.

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However, due to the inefficiency of the latter method, the court ordered that payments be made directly to local councils.

This judgment followed a lawsuit initiated by the Attorney General of the Federation, Lateef Fagbemi, SAN, which sought to secure financial autonomy for Nigeria’s 774 local government areas.

Although the ruling had been made, its implementation was postponed to ensure the establishment of proper mechanisms. Dare confirmed that these processes are now finalized, setting the stage for local governments to start receiving 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 N2.9bn instead of the N200m I was getting before.’

“From the end of this month local government will receive the money directly,” Dare further explained.

Dare also emphasized the need for more accountability in state and local government financial management. “One state collected N499 billion last year—nearly four times its previous allocation—yet there’s little to show for it,” he pointed out.

He stressed that while the federal government is frequently criticized, focus must also be directed at how states and local governments manage their finances.

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