Presidency Confirms Direct Federal Allocations to Local Governments by January

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

The development was confirmed by the Special Adviser to the President on Media and Public Communications, Sunday Dare in an interview on Arise News on Thursday night.

Dara said the move is a testament to President Bola Tinubu’s commitment to implementing the Supreme Court’s landmark judgment in July 2024. The judgment declared state control over local government funds unconstitutional, paving the way for direct federal allocations to local governments.

The Supreme Court’s ruling, delivered by Justice Emmanuel Agbim, mandated that allocations to local governments should be paid directly, rather than through state governments. This decision 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.

Dare said the move is expected to boost the financial autonomy of local governments, enabling them to execute projects and programs more effectively.

“We have a President who ensures local government autonomy,” Dare said. “I spoke to a local government chairman, who said, ‘Oh, I will be getting N2.9bn, instead of the N200m I was getting before’.”

The Presidency has also called for greater scrutiny of state and local government financial management. Dare noted that while the Federal Government often faces criticism, attention must also shift to how states and local governments utilize their resources.

“One state collected N499 billion last year—nearly four times its previous allocation—yet there’s little to show for it,” he said. “The framers of our constitution created the three tiers of government for a reason. It’s time to hold states and local governments accountable.”