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, disclosed this during an interview on Arise News on Thursday night.
Dare reaffirmed President Bola Tinubu’s commitment to implementing the Supreme Court’s landmark July 2024 judgment, which declared state control over local government funds unconstitutional.
The unanimous decision, delivered by Justice Emmanuel Agbim, ruled that allocations to local governments should be paid directly or through states. However, due to the ineffectiveness of state-controlled disbursements, the court mandated direct payments to local councils.
The ruling followed a lawsuit filed by the Attorney General of the Federation, Lateef Fagbemi (SAN), advocating for financial autonomy for Nigeria’s 774 local government areas.
Despite the ruling, implementation was delayed to ensure proper mechanisms were in place. Dare confirmed that these arrangements are now complete, allowing direct payments to commence 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, local governments will receive their money directly,” Dare stated.
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 emphasized that while the Federal Government often faces criticism, attention must also shift to how states and local governments manage 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.
