GistReel
The Presidency has announced that, starting at the end of January, local government areas (LGAs) across Nigeria will begin receiving their allocations directly from the Federal Allocation Account Committee (FAAC).
This decision follows a landmark Supreme Court ruling in July 2024, which deemed state control over local government funds unconstitutional.
According to reports, the Special Adviser to the President on Media and Public Communications, Sunday Dare, confirmed this development during an interview on Arise News on Thursday night.
Dare emphasized President Bola Tinubu’s commitment to ensuring financial autonomy for Nigeria’s 774 local governments.
Bola Tinubu
In a unanimous judgment delivered by Justice Emmanuel Agbim, the Supreme Court directed that funds allocated to local governments should either be paid directly to them or routed through state governments. However, due to inefficiencies in the latter method, the court insisted on direct payments to LGAs.
The ruling stemmed from a suit filed by the Attorney General of the Federation, Lateef Fagbemi (SAN), advocating for financial independence for local governments.
Dare explained that the delay in implementing the court’s decision was necessary to put appropriate systems in place, which are now fully operational.
The President spokesman said, “We have a President who ensures local government autonomy.
“I spoke to a local government chairman, who said, ‘Oh, I will be getting ₦2.9bn, instead of the ₦200m I was getting before.’ From the end of this month, LGs will receive the money directly.”
Dare emphasized the need for greater accountability in how states and local governments manage their resources.
“One state collected ₦499 billion last year—nearly four times its previous allocation—yet there’s little to show for it,” Dare noted, adding that this underscores the importance of financial transparency across all levels of government.
Dare called on Nigerians to hold state and local governments accountable, noting that criticism often unfairly targets only the Federal Government.
“The framers of our constitution created the three tiers of government for a reason. It’s time to hold states and local governments accountable,” he added.
