From February, Local governments will receive direct federal allocations – Presidency

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

The Special Adviser to the President on Media and Public Communications, Sunday Dare, made this disclosure 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 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.

Despite the ruling, implementation had been delayed to ensure 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.

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

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