Presidency confirms direct allocation of funds to LG starting January

The Presidency has announced a landmark shift in Nigeria’s fiscal structure, confirming that local government areas will begin receiving their allocations directly from the Federal Allocation Account Committee (FAAC) by the end of January.

Sunday Dare, Special Adviser to President Bola Tinubu on Media and Public Communications, disclosed this development during an interview on Arise News on Thursday night. He emphasized the administration’s commitment to upholding the Supreme Court’s July 2024 ruling, which declared state control over local government funds unconstitutional.

The Supreme Court, in a judgment delivered by Justice Emmanuel Agbim, ruled that local government allocations must be disbursed either directly or through state governments. However, citing inefficiencies with state mediation, the court mandated direct payments to local councils.

This ruling was a result of a suit filed by the Attorney General of the Federation, Lateef Fagbemi (SAN), advocating financial autonomy for Nigeria’s 774 local government areas.

While the judgment was celebrated, its implementation faced delays due to the need to establish appropriate mechanisms.

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

“From the end of this month, LG will receive the money directly,” Dare explained.

Dare also called for greater scrutiny of state and local government financial management. “One state collected N499 billion last year—nearly four times its previous allocation—yet there’s little to show for it,” he noted.

He stressed that while the Federal Government often faces criticism, attention must also shift to how states and local governments utilize their resources.

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