Presidency Reveals When Local Governments Will Start Receiving Direct Federal Allocations

The Presidency has announced that from the end of January, local government areas (LGAs) across Nigeria will begin receiving their allocations directly from the Federal Allocation Account Committee (FAAC).

This move follows a landmark Supreme Court judgment in July 2024, which declared state control over local government funds unconstitutional.

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

He reaffirmed President Bola Tinubu’s commitment to ensuring financial autonomy for Nigeria’s 774 local governments.

In a unanimous decision delivered by Justice Emmanuel Agbim, the apex court mandated that funds allocated to local governments be paid directly or through states.

However, due to inefficiencies in the latter approach, the court insisted on direct payments to councils.

The judgment was the result of a suit filed by the Attorney General of the Federation, Lateef Fagbemi (SAN), advocating for financial independence at the local government level.

Dare explained that the delayed implementation was necessary to establish proper mechanisms, which are now ready.

The President spokesman said, “We have a President who ensures local government autonomy.

“I spoke to a local government chairman, who said, ‘Oh, I will be getting ₦2.9bn, instead of the ₦200m I was getting before.’ From the end of this month, LGs will receive the money directly.”

Dare emphasized the need for greater accountability in how states and local governments manage their resources.

“One state collected ₦499 billion last year—nearly four times its previous allocation—yet there’s little to show for it,” Dare noted, adding that this underscores the importance of financial transparency across all levels of government.

Dare called on Nigerians to hold state and local governments accountable, noting that criticism often unfairly targets only the Federal Government.

“The framers of our constitution created the three tiers of government for a reason. It’s time to hold states and local governments accountable,” he added.