Local Governments will Receive Federal Allocations Directly This Month – Presidency

The Presidency has said local governments across the country will begin to receive their allocations directly from the Federal Allocation Account Committee (FAAC) this month. The development comes after the Supreme Court declared state control over local government funds unconstitutional. The announcement was made by the Special Adviser to the President on Media and Public […]

The Presidency has said local governments across the country will begin to receive their allocations directly from the Federal Allocation Account Committee (FAAC) this month.

The development comes after the Supreme Court declared state control over local government funds unconstitutional.

The announcement was made by the Special Adviser to the President on Media and Public Communications, Sunday Dare, during an interview on Arise News.

Dare reaffirmed President Bola Tinubu’s commitment to implementing the Supreme Court’s landmark July 2024 judgment delivered in a unanimous decision by Justice Emmanuel Agbim.

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The apex court had ruled that allocations to local governments should either be paid directly or through states.

However, due to the ineffectiveness of the latter, the court mandated that funds be paid directly 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.

While the ruling was made in July 2024, its implementation had been delayed to ensure proper mechanisms were in place.

According to the Presidential aide, “We have a President who ensures local government autonomy.

“I spoke to a local government chairman who confirmed he will be getting N2.9bn, instead of the N200m he used to get before. So from the end of this month, the councils will receive the money directly.”

He however, emphasized the need for greater scrutiny of state and local government financial management.

He noted that “One state collected N499 billion last year, nearly four times its previous allocation, yet there’s little to show for it.

Dare said while the Federal Government often faces criticism, attention must also shift to how states and local governments utilize their resources.