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Why FG Hasn’t Commenced Direct Allocation To LGs~ ALGON
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9/24/2025, 5:00:00 PM
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3/21/2025, 7:52:30 AM
By Eniekenemi Atoukudu - 3/21/2025, 7:44:20 AM
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The Federal Government has yet to commence direct allocation to Local Government Areas (LGAs) due to ongoing procedural requirements. Hon. Odunayo Alegbere, Chairman of the ALGON Board of Trustees, revealed that local governments have been directed to open accounts with the Central Bank of Nigeria (CBN) to facilitate a smooth transition to direct funding. While the process remains incomplete, Alegbere praised the Federal Government for the progress made, referencing the Supreme Court’s ruling on financial autonomy for LGAs. He emphasized that the government is committed to implementing this judgment, which also includes administrative and political independence for local governments. Alegbere expressed confidence that direct allocation would alleviate poverty at the grassroots by granting LGAs greater control over their finances and development projects. He also criticized the current system where states oversee local government elections, often reducing them to selection exercises rather than true democratic processes. However, he assured that this issue is being addressed through ongoing constitutional amendments by the National Assembly.
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