Local govts to receive direct federal allocations by January — Presidency

• Confirmed that the arrangements were now complete
  

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The Presidency has announced that local government areas across Nigeria will, from the end of January, begin receiving their allocations directly from the Federal Allocation Account Committee, FAAC, marking a significant step towards local government autonomy.

The Special Adviser to President Bola Tinubu on Media and Public Communications, Sunday Dare, made this announcement in an interview on Arise News on Thursday night.

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

WITHIN NIGERIA recalls that in a unanimous decision delivered by Justice Emmanuel Agbim, the Supreme Court of Nigeria held that allocations to local governments should either be paid directly or through states.

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.

Speaking during the interview, Dare confirmed that the arrangements were 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. One state collected N499 billion last year—nearly four times its previous allocation—yet there’s little to show for it,” Dare explained.

The presidential spokesman also called for greater scrutiny of state and local government financial management.

He emphasised that while the Federal Government often faces criticism, attention must also shift to how states and local governments utilise 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.