AUTONOMY: We'll Begin to Pay LGs Allocation Directly from January Ending – Presidency

By Jumoke Owoola  The Presidency has confirmed that local government areas (LGAs) across Nigeria will start receiving their allocations dire...

By Jumoke Owoola 

The Presidency has confirmed that local government areas (LGAs) across Nigeria will start receiving their allocations directly from the Federation Account Allocation Committee (FAAC) by the end of January, signaling a historic move toward local government financial autonomy.

Badagry Today recently published that all was set for the Federal Government to commence direct financial allocations to local governments, in line with the Supreme Court judgment affirming local government autonomy

This announcement was made by the Special Adviser to the President on Media and Public Communications, Sunday Dare, during an interview on Arise News on Thursday night. Dare emphasized President Bola Tinubu’s unwavering commitment to enforcing the Supreme Court's landmark July 2024 ruling, which deemed state control over local government funds unconstitutional.

The apex court, in a unanimous judgment delivered by Justice Emmanuel Agbim, mandated that allocations to LGAs should either be paid directly or via states. However, citing the inefficiency of indirect payments, the court directed that funds be transferred straight to the local councils. The ruling was the result of a suit filed by the Attorney General of the Federation, Lateef Fagbemi (SAN), advocating for the financial independence of Nigeria’s 774 LGAs.

Dare revealed that implementation of the judgment had been delayed to allow the Federal Government to establish necessary mechanisms. These preparations, he stated, are now complete, enabling the direct disbursement of funds to LGAs starting this month.

“We have a President who is committed to local government autonomy. I recently spoke with a local government chairman who told me, ‘I’ll now be getting N2.9 billion, instead of the N200 million I used to receive.’ This new policy will change the game,” Dare remarked.

He also highlighted the need for greater transparency in the financial management of states and LGAs. Citing an example, he said, “One state collected N499 billion last year—nearly four times its previous allocation—yet there’s little to show for it.”

Dare stressed the importance of accountability at all levels of governance, noting, “The framers of our constitution created the three tiers of government for a reason. It’s time to hold states and local governments accountable.”

This move is expected to strengthen local governance, improve service delivery, and address years of underfunding in LGAs.