Politics

Nigeria’s Local Governments to Receive Allocations Directly From FAAC

By Oyinkansayo Wole-Bodunde.

Nigeria’s Presidency has made an  announcement that, starting from the end of January, local government areas will start receiving their allocations directly from the Federal Allocation Account Committee (FAAC).

This move marks a significant milestone towards achieving local government autonomy in the country.

According to Sunday Dare, Special Adviser to the President on Media and Public Communications, this development is a proof of President Bola Tinubu’s commitment to implementing the Supreme Court’s landmark judgment in July 2024. The judgment declared that state control over local government funds is unconstitutional and mandated that allocations be paid directly to local councils.

The Supreme Court’s decision was a response to a suit filed by the Attorney General of the Federation, Lateef Fagbemi (SAN), who advocated for the financial autonomy of Nigeria’s 774 local government areas. Although the ruling was made in July 2024, its implementation was delayed to ensure that proper mechanisms were put in place.

Dare confirmed that these arrangements are now complete, giving way for local governments to start receiving funds directly. He gave an example of a local government chairman who will be receiving N2.9 billion, a significant increase from the N200 million he was previously getting.

Dare said, “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 also emphasized the need for greater scrutiny of state and local government financial management. He pointed out that one state collected N499 billion last year, which is nearly four times its previous allocation, yet there is little to show for it.

Dare stressed that while the Federal Government often faces criticism, it is equally important to hold states and local governments accountable for their use of resources. He said, “The framers of our constitution created the three tiers of government for a reason. It’s time to hold states and local governments accountable.”

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