Local Governments To Receive Direct Federal Allocations By January, Says Presidency

The Nigerian Presidency has confirmed that by the end of January, all local government areas (LGAs) nationwide will begin receiving their federal allocations directly from the Federal Allocation Account Committee (FAAC). This move is aimed at strengthening local government autonomy and ensuring financial transparency.

Sunday Dare, the Special Adviser to the President on Media and Public Communications, disclosed this during an interview on Arise News on Thursday night. He emphasized President Bola Tinubu’s commitment to upholding the Supreme Court’s landmark July 2024 judgment, which declared state control over local government funds unconstitutional.

Supreme Court Ruling on Local Government Autonomy

In July 2024, the Supreme Court, led by Justice Emmanuel Agbim, ruled that federal allocations to LGAs should be paid either directly or through state governments. However, due to inefficiencies in the latter method, the court mandated direct payments to local councils.

This decision followed a legal suit filed by the Attorney General of the Federation, Lateef Fagbemi (SAN), advocating for the financial independence of Nigeria’s 774 local governments. Although implementation faced initial delays to establish proper mechanisms, the Presidency has now confirmed that everything is in place for the rollout.

Increased Revenue for Local Governments

Sunday Dare provided a practical example of how this change will impact local councils. He quoted a local government chairman who said, “I will be getting N2.9 billion directly instead of the N200 million I used to receive.” This highlights the significant financial boost local governments will experience under the new system.

Starting at the end of January, these funds will flow directly to LGAs, marking a new era of financial autonomy and accountability for grassroots governance.

The Call for Financial Accountability

Dare also raised concerns about the financial management of both state and local governments. He noted that some states have received record-breaking allocations yet lack visible developmental achievements. For example, he revealed, “One state collected N499 billion last year—nearly four times its previous allocation—but there’s little to show for it.”

He urged citizens and watchdog organizations to scrutinize how resources are utilized at all levels of government. “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 stated.

Implications for Governance and Development

This policy shift aligns with the Federal Government’s broader goal of decentralizing power and improving governance at the grassroots level. With direct federal allocations, local governments are better positioned to invest in infrastructure, education, healthcare, and other essential services.