Presidency Sets Timeline For Local Governments To Receive Direct Federal Allocations

The Presidency has announced that Nigeria’s local government areas (LGAs) will begin receiving their federal allocations directly from the Federation Allocation Account Committee (FAAC) starting at the end of January.

This decision follows a pivotal Supreme Court ruling in July 2024, which deemed state control over local government funds unconstitutional.

Sunday Dare, the Special Adviser to the President on Media and Public Communications, revealed the development during an interview on Arise News Thursday night. He reiterated President Bola Tinubu’s commitment to granting financial autonomy to Nigeria’s 774 local governments.

The Supreme Court, in a unanimous judgment by Justice Emmanuel Agbim, mandated that funds allocated to LGAs be paid directly or through states. However, citing inefficiencies in the latter approach, the court instructed direct disbursement to councils.

The landmark ruling stemmed from a case filed by the Attorney General of the Federation, Lateef Fagbemi (SAN), advocating for financial independence at the local government level.

Dare explained that the implementation delay was to allow for the establishment of proper systems, which are now in place.

“We now have a President committed to local government autonomy,” Dare stated. “I spoke with a local government chairman who mentioned he would receive ₦2.9 billion instead of the ₦200 million he used to get. From this month’s end, LGs will receive funds directly.”

He also highlighted the need for greater financial accountability at both state and local government levels.

“One state received ₦499 billion last year—almost four times its previous allocation—yet there’s little evidence of significant development,” Dare remarked, underscoring the importance of transparency in resource management.