Local Governments to Receive Direct Federal Allocations by January, Says Presidency

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.

 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 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 judgment, delivered in a unanimous decision by Justice Emmanuel Agbim, 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. Dare confirmed that these arrangements have now been completed, allowing local governments to start receiving funds directly 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’,” Dare said. “From the end of this month, LG will receive the money directly.”

Dare also emphasized the need 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 pointed out. He stressed that while the Federal Government often faces criticism, attention must also shift to how states and local governments utilize their resources.