Tinubu's Govt to Begin Payment of Allocation to Councils, Date, Other Major Details Emerge
- Starting January 2025, local councils will receive direct allocations from the Federation Account, following the Supreme Court’s ruling on financial autonomy
- Some governors, like in Anambra, resist the change, but the government is committed to ensuring compliance with the ruling
- The move aims to improve grassroots governance, with chairmen urged to focus on infrastructure, security, and essential services
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The Federal Government is set to begin direct payments of allocations to local government councils from January 2025.
This is following the Supreme Court's judgment granting financial autonomy to councils.
Source: Facebook
As reported by The Nation, the disbursement will commence with this month's allocation from the Federation Account.
A government source revealed that the direct payments, which will affect all 774 councils, are a significant step in empowering local governments to function independently.
“A few councils have already started receiving direct allocations, but the full rollout will begin in January 2025,” the source stated.
This move follows a July 11 Supreme Court ruling, which emphasized local governments' autonomy and ordered that councils receive funds directly from the Federation Account, bypassing state governors who have historically controlled these funds through joint accounts.
Although some state governors have resisted this directive, fearing the loss of control, the committee overseeing the implementation, led by Secretary to the Government of the Federation (SGF) George Akume, is working to ensure full compliance, Vanguard reported.
Governors' reactions and future plans
The issue has sparked tension, with some states attempting to bypass the Supreme Court ruling.
Anambra State’s recent bill mandating a joint account has faced criticism for undermining the court’s decision, while Nasarawa State has fully complied by abolishing joint accounts.
Attorney-General of the Federation, Lateef Fagbemi, supported the move, stressing that the autonomy was meant to empower local governments, not individual leaders.
“Any chairman found guilty of diverting funds will face severe legal consequences,” Fagbemi warned.
The move to give councils direct access to FAAC funds is expected to enhance governance at the grassroots level.
Aminu Muazu Maifata, former National President of the Association of Local Governments of Nigeria (ALGON), urged local government chairmen to focus on improving infrastructure, addressing insecurity, and providing basic needs like clean water.
"I expect them to work towards improving the lives of the people at the grassroots," Maifata saingid.
As the January 2025 deadline approaches, the Inter-Ministerial Committee will continue to monitor progress and ensure that local governments can operate without state interference, marking a critical shift in Nigeria’s governance structure.
FG to begin implementation of LG autonomy
Legit.ng earlier reported that the federal government was set to implement the Supreme Court judgment granting local government financial autonomy.
Hakeem Ambali, national president of NULGE, said that the committee set up by the federal, state and local government authorities had concluded their meetings and signed the technical document.
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Source: Legit.ng
