BREAKING: Federal Govt Establishes Unit for Direct Fund Disbursement to LGAs

 



In a move towards strengthening the financial autonomy of local governments in Nigeria, the Federal Government has established a dedicated unit within the Office of the Accountant General of the Federation (OAGF). This unit will oversee the direct disbursement of funds to all 774 local governments across the country, marking the official commencement of financial autonomy for the third tier of government, set to begin in January 2025.

This step is part of ongoing efforts to ensure that local governments operate with greater fiscal independence and accountability, ultimately enhancing governance at the grassroots level. The Federation Account Allocation Committee (FAAC) is set to hold its first meeting of the year on Wednesday, and it is expected that discussions will center on the operational details for the new direct allocation process.

A source within the OAGF confirmed that the necessary structures and processes have been carefully set up to ensure a smooth and efficient rollout of the initiative. "Most of the 774 LGAs will begin receiving their allocations directly from January 2025," the source revealed. "The Inter-Ministerial Committee will reconvene later this month to review progress and finalize measures before the Accountant General of the Federation authorizes the full rollout."

The direct disbursement of funds to local governments is expected to foster transparency and reduce the influence of state governors over local government finances. The Finance Minister and Coordinating Minister of the Economy, Wale Edun, has reportedly approved the initiative, signaling the government's commitment to strengthening local governance structures.

Ministry officials, who have extensive experience managing state-level allocations, are said to be well-prepared to manage the disbursement process. "The department responsible for this is fully prepared. The structure is already in place, so there will be no challenges in implementing the minister’s directive," an official source said.

Additionally, the Inter-Ministerial Committee is expected to address several concerns raised by local government stakeholders, particularly regarding attempts by some state governors to undermine the autonomy of democratically elected local government officials, such as chairpersons, deputies, and councilors. The committee's discussions will likely focus on safeguarding the financial independence of local governments and ensuring that the new system is not disrupted by political interference at the state level.

The decision to implement direct disbursements marks a significant milestone in the ongoing efforts to promote financial transparency and accountability in local governments. It is expected that this new arrangement will help local governments better manage their resources, improve service delivery to citizens, and strengthen democratic institutions at the grassroots level.

As the January 2025 deadline approaches, all eyes will be on the successful execution of the direct fund allocation system, with hopes that this initiative will serve as a model for financial autonomy in other areas of government.

Comments

Post a Comment

Popular posts from this blog

BREAKING NEWS! Enugu State Governor Appoints New Clerk of the House of Assembly

Image
Enugu State Governor, Dr. Peter Ndubuisi Mbah, has announced the appointment of Mrs. Ngozi Silverline Egbo as the new Clerk of the Enugu State House of Assembly. The appointment, which was made official today, takes effect from Thursday, January 2, 2025. The Governor's decision to appoint Mrs. Egbo comes as part of efforts to ensure the smooth running of the state's legislative processes. Mrs. Egbo, whose extensive experience and commitment to public service have earned her recognition, is expected to bring fresh perspectives to the role. In a brief statement, the Secretary to the State Government, Prof. Chidiebere Onyia, confirmed the appointment, noting that the new Clerk would assume her responsibilities starting today. The full public announcement reads: ENUGU STATE GOVERNMENT PUBLIC SERVICE ANNOUNCEMENT GOVERNOR MBAH APPOINTS NEW CLERK OF THE HOUSE OF ASSEMBLY The Governor of Enugu State, His Excellency, Dr. Peter Ndubuisi Mbah has approved the appointment of Mrs. Ngozi Si...
Read more

Shettima, 13 Governors Pay New Year Homage to Tinubu in Lagos

Image
Vice-President Kashim Shettima and 13 state governors paid a New Year homage to President Bola Tinubu in Lagos on Wednesday. The president is currently in Lagos for the Christmas and New Year celebrations. Among the governors present were Abba Yusuf of Kano, Sherriff Oborevwori of Delta, AbdulRahman AbdulRazaq of Kwara, Babajide Sanwo-Olu of Lagos, and Siminalayi Fubara of Rivers. Other governors in attendance included Lucky Aiyedatiwa of Ondo, Usman Ododo of Kogi, Hope Uzodimma of Imo, Abdullahi Sule of Nasarawa, Peter Mbah of Enugu, Biodun Oyebanji of Ekiti, Monday Okpebholo of Edo, and Babagana Zulum of Borno. During the visit, Shettima expressed optimism about the country’s economic future. He noted that the administration was working hard to stabilize the economy, which has already started showing positive signs of recovery. “I am confident that 2025 will bring about substantial economic activities and improvements to the lives of citizens,” Shettima said. He expressed optimism ab...
Read more

BREAKING: Serving House Of Reps Member Is Dead!

Image
  The House of Representatives member representing the people of Ikenne/Sagamu/Remo North Federal Constituency, Rt Hon. Oriyomi Adewunmi Onanuga, aka Ijaya, is reportedly dead. According to Gistcore, Onanuga, the Deputy Chief Whip of the House of Representatives, died after a brief illness. Meanwhile, the sad news is yet to be made official to the public either by NASS or the family. Born on December 2, 1965, Onanuga was a politician and entrepreneur. She had been the Deputy Chief Whip of the Nigerian House of Representatives since 2023. She was born in Hammersmith, London to Nigerian parents. In 2019, Onanuga contested election for Member, House of Representatives on the platform of the All Progressives Congress (APC) and won. She was also the chairperson of the House Committee on Women Affairs and Social Development.
Read more