The Presidency has announced that, starting late January, local government areas across Nigeria will receive their allocations directly from the Federal Allocation Account Committee (FAAC).
This development marks a pivotal step toward local government autonomy.
Sunday Dare, Special Adviser to the President on Media and Public Communications, revealed this during an interview on Arise News Thursday night. He reaffirmed President Bola Tinubu’s commitment to enforcing the Supreme Court’s landmark July 2024 ruling, which declared state control over local government funds unconstitutional. The unanimous decision, delivered by Justice Emmanuel Agbim, mandated direct payments to local councils, citing the ineffectiveness of channeling funds through state governments.
The judgment stemmed from a suit filed by the Attorney General of the Federation, Lateef Fagbemi (SAN), advocating financial independence for Nigeria’s 774 local governments.
Although implementation was delayed to establish proper systems, Dare confirmed that all necessary arrangements are now in place, enabling direct disbursements to local governments by the end of January.
“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.
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