All 774 LGAs Will Fully Start Receiving Their Allocations From January – Source

Local councils in Nigeria are set to start receiving direct allocations from the Federation Account next month, marking a significant shift in their financial autonomy.

Naijaonpoint reports that this follows the Supreme Court’s July 11 ruling granting financial independence to councils.

A source familiar with the matter confirmed to The Nation that the disbursement for December’s allocation will be sent directly to local councils in January, ending months of delays in implementing the court’s judgment.

While some councils have already been receiving their allocations directly, this new directive will ensure all 774 local councils nationwide gain financial independence.

According to a member of the Inter-Ministerial Committee overseeing the process, all outstanding issues have been resolved to enable the smooth rollout.

Governors’ Resistance and Autonomy Challenges

The joint state-local government account, which previously controlled council allocations, has faced resistance from many governors who are unhappy with the Supreme Court’s decision.

Despite this, the Federal Government is moving forward with plans to fully operationalise direct allocations.

The committee member explained: “A few LGAs have already started receiving their direct allocations but all of the 774 LGAs will fully start receiving their allocations from January 2025.

“Our committee will reconvene in January to review its progress and finalise measures before the Accountant-General of the Federation issues authorisation for the complete rollout.

“This is a critical juncture in Nigeria’s governance structure.

“Our January 2025 meeting will also address the actions of governors attempting to undermine the autonomy of democratically elected LGA chairmen, deputies, and councillors, ensuring they are not coerced into serving state interests.”

The committee is also set to address governors’ interference in local council operations.

This includes cases like in Edo State, where the governor allegedly influenced the suspension of elected local government chairmen over financial disputes.

“It is highly undemocratic for governors to dissolve elected LGAs.

“Such actions undermine the autonomy granted to local governments and create an environment where LGAs become pawns in the hands of state executives,” the source added.

Federal Government’s Commitment

The Federal Government, under President Bola Ahmed Tinubu, has strongly supported the financial autonomy of local councils.

The Inter-Ministerial Committee, chaired by Secretary to the Government of the Federation (SGF) George Akume, has worked diligently to implement the Supreme Court ruling.

Committee members include Coordinating Minister of the Economy Wale Edun, Attorney-General of the Federation Lateef Fagbemi (SAN), Minister of Budget and Economic Planning Abubakar Bagudu, Accountant-General of the Federation Oluwatoyin Madein, Central Bank Governor Olayemi Cardoso, and the Revenue Mobilisation Allocation and Fiscal Commission Chairman Muhammed Shehu, among others.