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The Nigerian Presidency has announced a pivotal change in the financial management of local governments, which will begin at the end of January 2025.
Local government areas across the country will now receive their allocations directly from the Federal Allocation Account Committee (FAAC), a significant move towards enhancing local government autonomy.
This announcement was made by Sunday Dare, the Special Adviser to President Bola Tinubu on Media and Public Communications, during an interview on Arise News. He emphasized that this initiative aligns with President Tinubu’s commitment to uphold a landmark Supreme Court ruling from July 2024, which deemed state control over local government funds unconstitutional.
The Supreme Court's unanimous decision, delivered by Justice Emmanuel Agbim, mandated that local government allocations should be paid directly to them or through the states. However, due to previous inefficiencies in state administration of these funds, the court has now directed that payments be made directly to local councils.
The ruling stemmed from a lawsuit initiated by the Attorney General of the Federation, Lateef Fagbemi (SAN), advocating for the financial independence of Nigeria’s 774 local government areas.
Although implementation had faced delays to establish proper mechanisms, Dare confirmed that these arrangements are now complete, allowing local governments to receive their funds directly.
Dare highlighted the potential impact of this change by sharing an example from a local government chairman who noted a substantial increase in funding—from N200 million to N2.9 billion. This shift is expected to empower local governments significantly, enabling them to execute projects more effectively and respond better to community needs.
Furthermore, Dare called for increased scrutiny regarding how state and local governments manage their finances. He pointed out discrepancies in financial allocations and stressed the need for accountability at all levels of government.
