Local Government will Receive Direct Federal Allocation From January ~ Presidency

The Presidency has announced that starting at the end of January, local government areas across Nigeria will begin receiving their allocations directly from the Federal Allocation Account Committee (FAAC). This marks a significant step toward local government autonomy.

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

In a unanimous decision delivered by Justice Emmanuel Agbim, the apex court ruled that allocations for local governments should be paid either directly or through the states. However, due to the ineffectiveness of the latter option, the court mandated that payments be court-mandated by local councils.

This ruling 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. Although the ruling was issued, its implementation had been delayed to ensure that 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.

He also called for better scrutiny of state and local government financial management. He said, “One state collected N499 billion last year—nearly four times its previous allocation—yet there’s little to show for it,” he noted.

He emphasized that while the Federal Government often faces criticism, attention must also be directed to how states and local governments use their resources.

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