LGs to receive direct federal allocations from January – Presidency

The Presidency has confirmed that starting from the end of January, local government areas across the country will receive their allocations directly from the Federal Allocation Account Committee (FAAC).

Special Adviser to the President on Media and Public Communications, Sunday Dare, made this disclosure during an interview on Arise News on Thursday night.

According to him, President Bola Tinubu has affirmed his commitment to ensuring the local government autonomy as declared by the Supreme Court.

He reiterated President Bola Tinubu’s commitment to implementing the Supreme Court’s landmark July 2024 judgment, which declared state control over local government funds unconstitutional.

On July 11, 2024, the Apex Court, in a unanimous decision delivered by Justice Emmanuel Agbim, ruled that allocations to local governments should either be paid directly or through state.

However, given the ineffectiveness of the latter, the court mandated direct payments to local councils.

The judgment followed 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 had been stalled to ensure proper mechanisms were in place. 

Dare confirmed that these arrangements are now complete, paving the way for local governments to begin 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, LG will receive the money directly,” Dare explained.

In addition, Dare called for greater scrutiny of 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 noted.

He stressed that while the Federal Government often faces criticism, attention must also shift to how states and local governments utilize their resources.

“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