BREAKING: FG Reveals Date for Direct Payment of Allocations to LGAs

  



Local councils across Nigeria are set to receive direct allocations from the Federation Account starting next month, marking a significant shift in governance at the grassroots level. This move follows the July 11 Supreme Court ruling granting financial autonomy to local government areas (LGAs). The decision aims to end delays and interruptions caused by the existing state-local government joint account system.


According to sources, the Federation Accounts Allocation Committee (FAAC) will disburse this month’s allocations directly to councils from January 2025, ensuring compliance with the Supreme Court’s mandate. An inter-ministerial committee established to implement the ruling has reportedly resolved outstanding issues, paving the way for the rollout. While some LGAs have already begun receiving direct funds, full implementation will cover all 774 councils nationwide starting next month.


This development underscores efforts by the Federal Government to ensure local governments can function effectively without undue interference from state governments. The inter-ministerial committee, led by Secretary to the Government of the Federation (SGF) George Akume, includes key government figures such as Coordinating Minister of the Economy Wale Edun, Attorney-General Lateef Fagbemi, Minister of Budget and Economic Planning Abubakar Bagudu, and representatives from the Central Bank of Nigeria and local governments.


Committee members stressed the importance of the financial independence of councils, describing it as a critical step in empowering grassroots governance. Attorney-General Fagbemi has warned governors against obstructing the judgment, threatening legal consequences for non-compliance.


Despite resistance from some governors, who argue that joint accounts ensure transparency, states like Nasarawa have abolished the system, aligning with the Supreme Court’s decision. In contrast, Anambra passed legislation requiring councils to remit a portion of their allocations to a state-controlled joint account, a move critics say undermines financial autonomy.


As part of the Supreme Court’s directive, states have conducted local government elections, ensuring that councils are led by democratically elected officials, a prerequisite for accessing direct allocations.


The Senate has also called for constitutional amendments to clarify Section 162(6) of the 1999 Constitution, which created joint accounts. Senate President Godswill Akpabio emphasized the need for a robust framework to guarantee local government autonomy.


Meanwhile, former National President of the Association of Local Governments of Nigeria (ALGON), Aminu Muazu Maifata, urged council chairmen to use the direct allocations to address pressing needs at the grassroots. Maifata highlighted priorities such as tackling insecurity, water shortages, and infrastructure gaps while implementing projects that improve the lives of rural communities.


He noted that ALGON has provided a template for judicious allocation use and expects councils to adhere to it. “We have set a clear roadmap for effective governance at the grassroots, and I expect chairmen to deliver on their responsibilities,” he said.


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