Direct Payment of FAAC to Local Govts to Begin January – Presidency

ABUJA – The Presidency has announced that, effective from the end of January 2025, local government councils across the country will receive their allocations directly from the Federal Allocation Account Committee (FAAC).

The Special Adviser to the President on Media and Public Communications, Sunday Dare, disclosed this development during an interview on Arise News on Thursday night.

Dare confirmed that President Bola Tinubu is committed to ensuring local government autonomy, a move expected to strengthen governance at the grassroots level.

The decision aligns with a landmark Supreme Court ruling delivered on July 11, 2024, which declared the retention of local government funds by state governments unconstitutional.

In the unanimous judgment, Justice Emmanuel Agbim emphasised that “demands of justice require a progressive interpretation of the law.”

The court ruled that local government allocations should be paid directly from the federation account to the councils, as routing the funds through state governments had proven ineffective.

The ruling followed a suit filed by the Attorney General of the Federation, Lateef Fagbemi (SAN), seeking full autonomy and direct funding for all 774 local government councils in Nigeria.

Despite the judgment, implementation faced delays as the Federal Government worked to establish a framework for smooth execution.

Dare, during the interview, highlighted the significance of the move and shared feedback from local government officials.

“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,” he said.

He also urged Nigerians to hold state and local governments accountable for the utilisation of public funds, citing instances of states receiving significantly increased allocations without corresponding improvements in governance.

“One state last year alone collected N499bn, almost four times what it was collecting before. Now, go to that state and see if there is any improvement. N499bn is not a small amount of money,” Dare noted.

He further stressed the importance of monitoring how funds are spent at all levels of government, noting that the Federal Government’s role in allocation does not extend to full responsibility for expenditures by states and local councils.

The move to enforce direct payment of local government allocations is expected to enhance transparency and accountability while empowering councils to address pressing developmental challenges in their communities.