The Nigerian Presidency has announced that local government areas across the country will begin receiving their allocations directly from the Federal Allocation Account Committee (FAAC) by the end of January.
This landmark development was confirmed by Sunday Dare, Special Adviser to the President on Media and Public Communications, during an interview on Arise News Thursday night. According to Dare, the move underscores President Bola Tinubu’s commitment to upholding the Supreme Court’s July 2024 judgment, which declared state control over local government funds unconstitutional.
The judgment, delivered by Justice Emmanuel Agbim, mandated that federal allocations to Nigeria’s 774 local governments be paid directly, bypassing state governments. The decision followed a suit filed by the Attorney General of the Federation, Lateef Fagbemi (SAN), advocating for the financial autonomy of local councils.
Dare emphasized that the new policy would enhance the financial independence of local governments, enabling them to execute projects and programs more effectively.
“We have a President who ensures local government autonomy,” Dare stated. “I spoke to a local government chairman who said, ‘Oh, I will be getting N2.9 billion instead of the N200 million I was receiving before.’”
The Presidency also called for increased scrutiny of financial management at both state and local government levels. Dare noted that while the Federal Government is often criticized for its use of resources, greater attention must be directed toward how states and local governments utilize their allocations.
“One state collected N499 billion last year—nearly four times its previous allocation—yet there’s little to show for it,” he revealed. “The framers of our constitution established three tiers of government for a reason. It’s time to hold states and local governments accountable.”
This initiative is expected to reshape financial governance in Nigeria, fostering transparency and improved service delivery at the grassroots level.
