The Federal Government has announced a major policy shift. Local governments in Nigeria will start receiving their allocations directly from FAAC from January end.
This is a big boost for local government autonomy.
This is in line with the Supreme Court’s July 2024 judgment that declared state control of local government funds unconstitutional.
Sunday Dare, Special Adviser to the President on Media and Public Communications made this known on Arise TV last night.
He said President Bola Tinubu is committed to implementing this.
The Supreme Court judgment led by Justice Emmanuel Agbim ordered that funds be paid directly to local councils, bypassing state governments because of the inefficiencies in the previous system.
With Financial Autonomy, local governments will now have control over their funds, for better resource allocation at the grassroots. By reducing state interference, the Federal Government seeks to improve transparency and governance at the local level.
Though the judgment was delivered in July 2024, implementation was delayed to put in place necessary mechanisms.
Sunday Dare said the arrangements are now in place and direct payments will start this month.
During the interview, Dare revealed a local government chairman he spoke with who was excited about the change.
He said the LG chairman told him “Oh, I will be getting N2.9 billion instead of N200 million I was getting before.”
Dare advised Nigerians to watch how states and local governments utilize their allocations. He gave an example of a state that got N499 billion in a year – almost quadruple its previous allocation – but nothing tangible to show for it.
“Three tiers of government were created for a reason. Let’s hold states and local governments accountable,” he said.
This is a big step for Nigeria’s 774 local governments. With more funds, accountability and focus on grassroots development, the impact can be huge. But it’s the citizens that must be active and watchful.