The Presidency has unveiled a transformative policy: local government areas across Nigeria will, starting from the end of January, receive their allocations directly from the Federal Allocation Account Committee (FAAC).
This groundbreaking move signifies a bold stride towards achieving true local government autonomy.
Sunday Dare, Special Adviser to President Bola Tinubu on Media and Public Communications, broke the news during an interview on Arise News Thursday night. Dare underscored the President’s unwavering commitment to enforcing the Supreme Court’s monumental July 2024 ruling, which struck down state control over local government funds as unconstitutional.
In a historic judgment delivered by Justice Emmanuel Agbim, the Supreme Court declared that funds allocated to local governments must be disbursed directly or through state channels. However, due to the inefficacy of the latter, the court mandated direct payments to local councils, a verdict following a suit championed by the Attorney General of the Federation, Lateef Fagbemi, SAN, advocating for the financial independence of Nigeria’s 774 local government areas.
Dare confirmed that all necessary arrangements have been finalized, setting the stage for direct allocations to commence by month’s end.
“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. One state collected N499 billion last year—nearly four times its previous allocation yet there’s little to show for it,” Dare revealed.
The Presidential spokesperson further called for heightened scrutiny of financial practices at the state and local government levels.
He urged Nigerians to hold these tiers of government accountable, emphasizing, “The framers of our constitution created the three tiers of government for a reason. It’s time to hold states and local governments accountable.”