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AUTONOMY: FG to Begin Direct Allocation to LGs, Warns Chairmen Against Governor's Interference

By Dansu Peter  The Federal Government is set to commence direct financial allocations to local governments this week, in line with the Supr...

By Dansu Peter 

Sanwo-Olu and Onilude Segun

The Federal Government is set to commence direct financial allocations to local governments this week, in line with the Supreme Court judgment affirming local government autonomy, report by The Nation Newspaper detailed.  

In a decisive move to ensure compliance, an Inter-Ministerial Committee chaired by the Secretary to the Government of the Federation (SGF), Senator George Akume, has convened a two-day meeting in Abuja to finalize the modalities for the enforcement of direct disbursements to the 774 local government councils.  

Members of the committee include the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN); the Minister of Budget and Economic Planning, Atiku Bagudu; and the Accountant-General of the Federation (AGF). Representatives from the Central Bank of Nigeria (CBN), the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), the Nigeria Governors’ Forum (NGF), and local governments are also part of the panel.  

According to a government source, the Nation Newspaper reports that the AGF has concluded arrangements to facilitate direct disbursements from the Federation Account Allocation Committee (FAAC) to democratically elected councils this week. This move comes amid reported resistance from some governors who seek to retain control over local government funds.  

A committee member, speaking on condition of anonymity, disclosed that the panel’s primary focus is to safeguard the financial independence of local councils and counteract any attempts by governors to undermine the autonomy mandate.  

“We are awaiting the Attorney-General’s pronouncement for further clarity. The panel aims to ensure that state governors do not coerce or manipulate local government officials into serving state interests,” the source said.  

The two-day meeting will evaluate the committee’s progress, finalize operational frameworks, and address potential legal and administrative challenges posed by state governments.  

The Federal Government’s decision aligns with the Supreme Court’s directive to curb the misuse of joint accounts, historically controlled by governors. These accounts have often been associated with delays and diversions of funds meant for grassroots development.  

A senior official from the Office of the Accountant-General of the Federation (OAGF) confirmed that mechanisms are already in place to ensure a seamless transition to direct disbursements.  

“The structure for direct allocations is well-established. A dedicated department within the OAGF will oversee the process, ensuring a smooth implementation,” the official stated.  

The Finance Minister is also expected to consult with President Bola Ahmed Tinubu on strategies to address resistance from state governments.  

“This enforcement marks a significant shift in local government administration, aimed at empowering grassroots governance and curbing undue interference by governors,” the source added.  

The Federal Government’s commitment to implementing local government autonomy underscores its resolve to strengthen democratic governance at the grassroots level.

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