Local Governments to Receive Direct Federal Allocations by January – Presidency

The Presidency has announced that, starting from the end of January, local governments across Nigeria will receive their allocations directly from the Federal Allocation Account Committee (FAAC), marking a major milestone in the push for local government autonomy.

This development was disclosed by the Special Adviser to the President on Media and Public Communications, Sunday Dare, during an interview on Arise News on Thursday night.

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

In the judgment, delivered by Justice Emmanuel Agbim, the Supreme Court ruled that allocations to local governments must be paid directly or through state governments. However, due to the inefficiency of the latter approach, the court mandated direct payments to local councils.

The judgment was the result of 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.

Although the ruling was made in July 2024, its implementation was delayed to ensure proper mechanisms were in place for seamless direct payments. Dare confirmed that these arrangements are now complete, enabling local governments to receive funds directly by the end of January.

“We have a President who ensures local government autonomy,” Dare said. He recounted a conversation with a local government chairman who expressed excitement about the change: ‘Oh, I will be getting N2.9 billion instead of the N200 million I was getting before.’

“From the end of this month, local governments will receive the money directly,” Dare affirmed.

He also called for increased scrutiny of financial management at the state and local government levels. Citing an example, Dare said, “One state collected N499 billion last year—nearly four times its previous allocation—yet there’s little to show for it.”

Dare emphasized that while the Federal Government often receives public criticism, it is crucial to also hold states and local governments accountable for their resource utilization.

“The framers of our constitution created the three tiers of government for a reason. It’s time to hold states and local governments accountable,” he concluded.